Transcript Highlights:

• Here's a note that water use efficiency is crop yield per water consumed.
• the brine volumes for disposal, thus reducing the cost.
• Profits to offset the treatment cost, but that needs to be demonstrated.
• It's just a more efficient permitting process from our perspective.
• So keeping up with these costs is really the biggest issue.

Transcript Highlights:

• Trump and Musk talk about efficiency, but there is nothing efficient about making our public schools
• There is nothing efficient about failing to give a great education to the next generation.
• Because our system had been blown up by a state that chose to save money and cut costs on the back of
• We are not against efficiency in government.
• Round Rock ISD administrative costs are among the lowest in the state.

Transcript Highlights:

• Um, you'll see in your packet, there's a breakdown of what regulatory costs are costing us.
• costs are costing<00:04:01.280> us.
• And that burden's of the total cost.
• So, um home due to those cost layers.
• There are ways to drop that cost.

Keywords: 958, all

Summary: The committee first heard a presentation from Northern Kentucky building industry representatives Brian Miller and Matt Mains on housing affordability and construction workforce issues. They argued that regulatory and code requirements add significant cost to new homes, citing an estimate of nearly $94,000 per home nationally and $15,000 to $20,000 per home in Boone County over the past decade. They recommended reforms to building code adoption, architectural design mandates, permit fees and delays, and setback/land dedication rules, saying these changes could reduce costs by $25,000 to $35,000 per home without affecting public safety. They also discussed workforce training efforts through the Enzwe Building Institute, dual-credit programs, apprenticeship incentives, and workforce grants, saying these efforts have helped hold wage growth below regional trends and improve housing affordability. Committee members asked about the breakdown of regulatory costs, the effect of energy codes, and ways to speed up permitting. The presenters said the costs were roughly split among federal, state, and local requirements, with local regulations adding about $25,000 to $35,000 and some energy-code changes adding about $19,000 per home. They said faster plan review, coordination with the Kentucky Division of Water, and addressing municipal staffing shortages could cut 30 to 45 days from approvals. Members also discussed the difficulty of building starter homes under about $350,000 and the need for more missing-middle housing, with the presenters saying such homes are hard to produce without sacrificing quality. The committee then took up Representative Kim Moer and Dr. Dale Bertram’s discussion of marriage and family therapist licensing and healthcare workforce data reporting. They explained that the bill would allow Kentucky to recognize out-of-state marriage and family therapists who meet licensure requirements, have no disciplinary history, and have passed the national exam, in order to reduce barriers and address provider shortages, especially in rural areas. They also described a separate workforce data reporting section that would require licensure boards to collect consistent information on where licensees practice and whether they are actively seeing patients, including through telehealth, so the state can better understand its healthcare workforce. Members supported the portability idea, noted that some qualified applicants are currently working in Indiana instead of Kentucky, and asked whether the data collection could be handled administratively; the sponsors said the bill would create consistency across boards. The committee also briefly discussed occupational board updates and the need for stronger communication between legislators and licensing boards, including architecture licensure issues and efforts to recruit more professionals.

Transcript Highlights:

• of the program through the total cost of the program through more<01:00:55.520> efficient<01:
• more efficient use of state dollars. more efficient use of state dollars.
• calculated on gross premium costs. calculated on gross premium costs.
• to maximize efficiency and the total<01:04:45.839> state<01:04:46.160> costs<01:04:46.559
• <01:19:57.920> of the cost of healthare, not the cost of the cost of healthare, not the cost

Keywords: 1187, senate, all

Transcript Highlights:

• The Committee on Regulatory Affairs and Government Efficiency is called to order.
• So the fact that the industry got together with the regulators and worked out a good, efficient system
• This has been a wonderfully efficient committee moving things along this morning.
• It's a cost-benefit analysis, I suppose—a risk-benefit analysis by the thief.
• We were so efficient. I know. But you're asked more questions. It's not a question. It's a comment.

Bills: SB1128, SB1137, SB1144, SB1145, SB1186, SB1235, SB1238

Keywords: scrap metal theft, study committee, Arizona, regulated industries, public safety, underground utilities, utility locating, dig safe, call before you dig, 811, excavation safety, damage prevention, one-call center, locate request, white lining, large project coordination, buried infrastructure, subsurface utilities, utility marking, locator wire

Summary: The Committee on Regulatory Affairs and Government Efficiency heard several bills and took action on three of them. Senate Bill 1137 would update underground facility excavation rules by requiring white lining before notice, creating coordination meeting requirements for large projects, adding an interactive response system, and directing the Arizona Corporation Commission to adopt rules. Supporters from SSC Underground, Arizona 811, and the Associated General Contractors said the bill would improve communication, reduce delays, and modernize the 811 system; the League of Arizona Cities and Towns raised concerns about staffing, project scope, meeting requirements, and liability, but said it was working on amendments. The committee passed SB 1137 on a 7-0 vote. Senate Bill 1145 would shift licensing and regulation of behavior analysts to the Committee of Behavior Analysts under the Psychology Board, reduce the board from 10 to 8 members, and remove the requirement for two behavior analysts on the board. Supporters said the current structure creates delays and that the change would let the board focus on psychology issues while the committee handles behavior analyst matters. A self-advocate also supported the bill, citing long waitlists and the importance of behavior analysts for people on the autism spectrum. The committee passed SB 1145 on a 7-0 vote. Senate Bill 1128 would create a study committee on scrap metal theft to review current laws, industry compliance costs, and penalties, and report recommendations by December 1, 2026. The Arizona Scrap Recyclers Association supported the bill as a way to evaluate whether current reforms remain effective, while members discussed the difficulty of tracing stolen metal and the need to keep the process bipartisan. The committee passed SB 1128 on a 7-0 vote. Senate Bill 1238, which adopts the Physician Assistant Licensure Compact to allow multistate licensure privileges, also received support from the Arizona State Association of Physician Assistants, who said it would improve workforce mobility, help military families, and expand access to care; the committee passed it on a 7-0 vote. The committee then held SB 1235 at the sponsor’s request and adjourned.

Transcript Highlights:

• It may cost you the death penalty. With that I move final passage of Senate Bill 990.
• This bill, Senate Bill 14, is about government. efficiency.
• . efficiency, and in the interest of efficiency, basically we deleted a whole lot. in putting together
• That's more efficient.
• Guess how much it costs to do that in the entire country. $18,000 for the entire country.

Bills: SJR57, SCR8, SB8, SB14, SB24, SB108, SB112, SB125, SB213, SB251, SB315, SB318, SB371, SB378, SB379, SB472, SB487, SB502, SB513, SB565, SB621, SB650, SB689, SB707, SB710, SB761, SB763, SB815, SB854, SB875, SB896, SB916, SB925, SB958, SB961, SB965, SB973, SB987, SB990, SB995, SB1006, SB1018, SB1019, SB1024, SB1026, SB1146, SB1194, SB1198, SB1253, SB1330, SB1343, SB1362, SB1379, SB1497, SB1498, SB1527, SB1532, SB1547, SB1596, SJR36, SJR12, SJR57, SCR22, SCR12, SCR8, SB565, SB765, SB62, SB666, SB707, SB888, SB687, SB847, SB1248, SB14, SB1006, SB504, SB925, SB995, SB857, SB305, SB296, SB284, SB815, SB1379, SB1497, SB1499, SB1498, SB241, SB304, SB621, SB1023, SB1024, SB686, SB112, SB371, SB204, SB609, SB670, SB502, SB850, SB854, SB413, SB1362, SB1346, SB1033, SB1220, SB1073, SB810, SB987, SB1539, SB447, SB875, SB406, SB985, SB965, SB1119, SB1505, SB24, SB1194, SB1253, SB1215, SB1532, SB1302, SB856, SB650, SB583, SB673, SB213, SB681, SB1172, SB1252, SB378, SB1343, SB608, SB487, SB955, SB957, SB988, SB990, SB1019, SB1021, SB1120, SB251, SB958, SB761, SB541, SB315, SB379, SB1018, SB1737, SB266, SB1415, SB1527, SB125, SB599, SB1330, SB53, SB916, SB896, SB1352, SB973, SB785, SB710, SB472, SB1450, SB1502, SB1566, SB414, SB1062, SB1547, SB961, SB1038, SB513, SB578, SB711, SB746, SB942, SB1404, SB1448, SB1738, SB108, SB8, SB318, SB507, SB533, SB689, SB1026, SB1349, SB1355, SB1433, SB1434, SB1596, SB1403, SB1198, SB1146, SB763, SB667, SB1059, SB617, SB1567, SB503, SJR37, SB16, SB310, SB311, SB396, SB505, SB1209, SB1210, SB1470, SB264, SB924, SB1029, SB1185, SB1202, SB1358, SB1364, SB1569, SB1697, SB1376, SB1228, SB519, SB878, SB1350, SB462, SB1535, SB827, SB1585, SB207, SB1207, SB1619, SB1396, SB920, SB1484, SB1273, SB1741

Keywords: central bank digital currency, CBDC, Federal Reserve, digital dollar, digital currency, cashless payments, financial privacy, cybersecurity, government surveillance, financial surveillance, money laundering, terrorism financing, illicit finance, banking policy, monetary policy, payments system, commercial banks, Texas Legislature, concurrent resolution, federal reserve digital currency

Transcript Highlights:

• These costs are not paid for by state government.
• <00:07:49.680> for employer share of pension costs for employer share of pension costs for
• These costs are not their employees.
• <00:17:35.919> and transparency, potential efficiencies and transparency, potential efficiencies
• and efficiently on the regional<00:20:09.440> level.

Keywords: 927, senate, all

Transcript Highlights:

• The second thing is there's cost The second thing is there's cost sharing.<00:27:58.399> Cost
• we basically narrowed down the cost we basically narrowed down the cost sharing<00:28:12.399>
• particular law, there is no cost particular law, there is no cost sharing.<00:28:45.120> And<
• uh what about cost the the cost sharing uh what about cost the the cost sharing uh the<00:29:
• basically more it's it's a efficient basically more it's it's a efficient effic<00:33:01.600>

Keywords: Meeting Start 00:00:00 Roll Call 00:00:15 HB 1 Discussion 00:02:00 HB 1 Vote 00:15:05 HB 2 Discussion 00:17:20 HB 2 Vote 01:13:20, 958, all

Summary: The committee met on House Bill 1, which would implement Kentucky’s participation in the federal education freedom tax credit program. Sponsors said the bill would allow donors to receive a federal dollar-for-dollar tax credit for contributions to scholarship granting organizations, with no state dollars involved, and that public school districts could potentially create their own SGOs. Members asked about the removal of state tax language in the committee substitute, the meaning of the 11th Amendment waiver, whether SGOs could serve only public school students, and whether data collection could be added. The sponsors said the state tax language was unnecessary because the credit is federal, the waiver would allow federal-court litigation over the act, and a district could establish an SGO if it met federal requirements. The committee adopted the substitute and then reported HB 1 favorably with 16 yes votes, one nay, three pass votes, and one abstention. The committee then took up House Bill 2, an act relating to Medicaid and making an appropriation. The sponsor described the bill as a response to federal HR 1 and to concerns raised by the Medicaid oversight board, saying it would address program integrity, eligibility redeterminations, cost sharing, and managed care organization contracts. He said the bill would require periodic eligibility verification for expansion Medicaid enrollees, add modest cost-sharing for some services to encourage use of primary care over emergency rooms, and strengthen enforcement of MCO contracts, with penalties going into a restricted compliance fund. Members asked about the committee amendment, and the sponsor explained it restored flexibility on the number of MCOs in future procurement rather than locking in a reduction. Members also asked whether the bill had gone before the Medicaid oversight advisory board and whether a fiscal note was available; the sponsor said the board’s recommendations were incorporated and fiscal notes were included in the packet. After discussion, the committee adopted committee amendment one to PHS2 and then adopted PHS2 as amended for consideration. The sponsor continued outlining the bill’s provisions, emphasizing that it applied to the expansion population and was intended to align Kentucky law with federal requirements while improving oversight and accountability.

Transcript Highlights:

• Cost, what's the value of that water that was lost?
• And the improvement costs.
• That's considered to be an efficient system.
• It costs $40 to do that.
• I mean, bigger has some efficiencies of scale.

Bills: HB29, HB685, HB1633, HB1689, HB1690, HB1918, HB2010, HB2500, HB2608, HB2626, HB29

Keywords: water audit, water loss, water loss mitigation plan, municipally owned utility, municipal utility, water conservation, Texas Water Development Board, TCEQ, Texas Commission on Environmental Quality, water leakage, leak detection, billing data accuracy, utility validation, water audit validation, water scarcity, water management, infrastructure, public utility, conservation plan, administrative penalty

Transcript Highlights:

• Bill 491 is a measure that would raise the threshold required for lease of real property equipment cost
• <00:10:06.160> by government performance and efficiency by government performance and efficiency
• <00:36:54.520> task efficiency task efficiency task force<00:36:56.920> representative<
• I am all for improving efficiency if we can find that without having it become a witch hunt.
• <00:46:00.760> if um I am all for improving efficiency if um I am all for improving efficiency

Keywords: Consideration of HB 491 02:14 Consideration of HB 738 07:58 Guest presentation by Taiwan Consul General Elliott Wang 25:20 Consideration of HCR 50 36:37 Consideration of SB 19 49:29, 958, all

Summary: The House State Government Committee met with a quorum and first considered House Bill 491 by Representative Steve Riley. The committee adopted a proposed committee substitute, then heard that the bill would raise the threshold for certain capital project and equipment purchases from $200,000 to $500,000, remove a requirement for a special board meeting when replacing a board of regents member, allow certain employees or contractors to perform capital construction work up to $500,000, remove limits on retired police officers working at postsecondary institutions, and speed release of pension information to employers. Members asked about reporting and oversight of the higher threshold, and the witness said the records are maintained by institutions and available upon request. HB 491 passed on a 19-0 roll call vote. The committee then heard House Bill 738 by Representative Griffey, relating to state personnel and the constitutional officers. The bill would give independently elected constitutional officers more flexibility to hire unclassified employees and set salaries for classified employees up to the midpoint without Personnel Cabinet approval, while leaving pay scales, appropriations, and funding limits unchanged. Representative Griffey and witnesses from the auditor’s office said the measure was intended to reduce red tape, address salary compression, improve pay equity, and help recruit and retain staff; they also said it would allow offices to fill policy roles needed for audits and other work. Members questioned the fiscal note, salary caps, and whether the bill would affect future budget requests. The bill passed 18-1, with one pass, and the chair noted it would move favorably to the House floor. After those bills, the committee briefly welcomed Taiwan’s consul general, Elliot Wang, and Representative Adam Bowling spoke about Kentucky’s relationship with Taiwan, including trade, investment, and prior assistance during disasters. Wang described Taiwan’s economic ties with the United States, ongoing trade and investment developments, defense and education cooperation, and people-to-people exchange programs, noting Kentucky was the first state to sign an education cooperation MOU with Taiwan in 2021.

Transcript Highlights:

• more efficient systems in the country.
• disparities and driving down the costs disparities and driving down the costs uh<01:19:14.400>
• no staff costs.
• no staff costs.
• but no staff much U maybe the Hard costs but no staff costs<01:31:38.719> um<01:31:38.840>

Keywords: 1187, senate, all

Transcript Highlights:

• It will increase efficiencies that we may not have due to technology.
• The board focuses on efficient and modern licensing.
• We think about from an economies of scale, the ability to save on administration costs, overhead costs
• It's a cost or time issue? I mean, why are they moving to that? Is it cost or time related?
• That allows us to operate very efficiently with our budget.

Keywords: 914, all

Transcript Highlights:

• And it's really, it's just not an efficient process.
• Chairman, Representative Nelson, though, isn't for soft costs; it's for hard costs.
• Chairman, Russell, though the appropriation isn't for soft costs, it's for hard costs.
• Is that being added as a new reimbursable cost?
• Is that new, is that being added as a new reimbursable cost?

Keywords: 908, all

Summary: The committee began with roll call and a brief update on remaining work, then took up Senate Bill 2213, the “science of math” bill. Members clarified that the appropriation for the program was not included in the DPI budget and would remain attached to the policy bill for now. The committee adopted the amendment and then gave the bill a do pass recommendation, 21-2. The committee next considered Senate Bills 2036 and 2037, both juvenile justice/Human Services bills involving mental health and criminal responsibility evaluations for minors. Testimony explained that the bills create new processes and require DHS to contract with specialized providers, with appropriations of $500,000 in 2036 and $300,000 in 2037. Members debated whether the funding should come from existing DHS resources or remain as separate appropriations, and whether the programs were one-time or ongoing. The committee adopted amendments on both bills and then recommended both do pass, with 2036 passing 14-6 and 2037 passing 17-4. The committee then heard Senate Bill 2021, the Information Technology Department budget. Representative Bosch outlined major themes in the budget, including migration from PeopleSoft and the mainframe, onboarding/off-boarding automation, double-counting of IT spending, and the transition of education technology from PowerSchool to Infinite Campus. Members also discussed a study amendment related to a statewide enterprise resource planning system, and added language on grant management and compliance management. The committee adopted the amendments and gave the budget a do pass recommendation, 20-0-3. Finally, the committee heard Senate Bill 2011, the Highway Patrol budget. Representative Pyle explained the House changes, including shifting some one-time costs to the motor carrier electronic permit fund, funding for body armor, breath tests, road course resurfacing, fleet costs, handgun replacement, and carryover authority for federal technology funds. The committee adopted the amendment and then passed the budget 21-0-2. The committee then began Senate Bill 2399, a Human Services bill on Medicaid reimbursement for psychiatric residential treatment facilities, but deferred action after testimony from a facility representative and committee discussion about therapeutic leave days, reimbursement rates, and whether a cap on reimbursable days should be set in statute or rule. The chair said the committee would seek more information from DHS and take the bill up the next day.

Transcript Highlights:

• <00:03:16.319> for winter peak demand, lower costs for winter peak demand, lower costs for
• It's very efficient, even more efficient than an air source heat pump because you don't have to move
• It's very efficient, even more efficient than an air source heat pump because you don't have to move
• practices, costs, and voter preferences. practices, costs, and voter preferences.
• very efficient in in elections. very efficient in in elections.

Bills: HF4348, HF4186, HF4202, HF4455, HF3884, HF3883, HF3882, HF3881, HF2688, HF3295, HF3862, HF3362, HF4242, HF3798

Keywords: HF4186, Minnesota local government finance, housing and redevelopment authority, HRA, public investment authority, qualifying government, State Board of Investment, SBI, index mutual fund, multifamily housing development, long-term equity investment, investment-grade fixed income, federally insured securities, government-sponsored entities, municipal investing, local government investments, housing finance, public funds, investment policy, risk of loss

Transcript Highlights:

• drive up the cost of construction.
• So there's another side to the cost factor and that is the cost of materials, right?
• lower costs for housing.
• So we can lower those costs.
• Birds, down payment costs. Down payment costs, absolutely.

Keywords: affordable housing, government investment, barriers, legislative solutions, public testimony

Summary: The committee meeting focused on addressing the significant issue of affordable housing in America. Members expressed concern over the persistent barriers faced in the housing sector, despite substantial government investment aimed at alleviating these issues. It was highlighted that government interference plays a critical role in complicating the housing landscape, and discussions revolved around potential legislative approaches to mitigate these challenges. Several witnesses provided testimony, contributing to a thorough exploration of the topic.

Transcript Highlights:

• , how can we make this transition in a cost-efficient manner?
• in any area be bearing that full cost?
• They're more effective, they're more efficient, and they're especially more cost-efficient for small
• They're more effective, they're more efficient, and they're especially more cost-efficient for small
• They're more effective, they're more efficient, and they're especially more cost efficient for small

Summary: The committee held an informational hearing on Carrier of Last Resort (COLR) to examine its history, current operation, and possible future changes in California. Chair Tasha Berner said the hearing was prompted in part by AT&T’s 2023 request for relief from COLR obligations and by broader concerns about public safety, affordability, universal service, and access to modern broadband and telecommunications. The first panel featured a telecommunications expert who traced COLR back to universal service principles and explained how states have handled COLR differently, including full deregulation, limited rural obligations, or transition pathways tied to competition and customer protections. Members asked about affordability, federal and state processes for service withdrawal, and whether COLR remains necessary given modern competition. CPUC staff then described California’s COLR framework, explaining that universal service rests on access, reliability/quality, and affordability, and that COLR requires carriers to provide basic service, including voice-grade calling, 911 access, relay services, and Lifeline. Staff said AT&T’s application sought relief in nearly all of its territory, but no replacement COLR came forward during the proceeding, and public participation hearings drew thousands of comments and strong concern from rural and vulnerable customers. The CPUC outlined its ongoing rulemaking to reconsider whether the 1996 COLR rules and 2012 basic-service definition still fit current conditions, with workshops and public hearings scheduled and a proposed decision expected later in the year or into 2026. Members pressed staff on geographic outreach, wireless coverage, whether broadband can be part of basic service, public safety during wildfires, and what reporting and complaint processes currently exist. In the final panel, industry and public-interest witnesses sharply disagreed. A U.S. Telecom representative argued COLR is outdated, costly, and copper-focused, and said reform should allow technology-neutral alternatives such as wireless, fiber, and satellite while preserving reliable voice and emergency access. The CPUC Public Advocates Office countered that COLR remains a necessary public safeguard, especially for rural and low-income customers, and argued that any transition should maintain or improve service, with public benefits such as broadband investment and continued protections for 911, disability access, and affordability. Committee members focused on the difference between an obligation to serve everyone and a mere option to serve, and on whether the Legislature should provide clearer guidance as the CPUC’s rulemaking moves forward.

Transcript Highlights:

• To date, the agency has spent approximately $21.9 million of the fund to pay for their contract costs
• Testing can address the cases quickly and efficiently, which is key to our regulatory mission.
• This would improve data collection, provide greater transparency, and increase internal efficiency.
• So, we'll be able to take on more cases faster. ...more efficiently if we get these three budget items
• I would like to come and tell you about how efficient an agency we have and what we have done for the

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• So we don't know the cost.
• The cost likely will be falling to the counties, but the state might get caught up in those costs as
• No cost analysis has been done.
• No cost analysis has been done.
• That's additional costs.

Summary: The Assembly Budget Subcommittee No. 5 heard updates from the Secretary of State, EDD, the State Controller’s Office, CalHR, and DGS on a range of budget proposals and federal policy impacts. Secretary of State Shirley Weber opened with remarks about California’s election system, emphasizing its safety, transparency, high voter registration and vote-by-mail participation, and the office’s response to bomb threats and other election threats. Her staff then presented funding requests for the Cal-Access Replacement System (CARS) and Help America Vote Act/VoteCal activities, describing them as needed to modernize campaign finance and lobbying disclosure systems and maintain election security and voter services. A major portion of the hearing focused on federal election policy, especially the potential effects of a presidential executive order and the SAVE Act. Secretary of State staff said California would face significant, potentially unquantifiable costs if forced to comply, including new burdens on county recorders, county election offices, and the Secretary of State’s office, and warned of voter disenfranchisement, especially for students, seniors, disabled voters, military and overseas voters, rural residents, and people with limited transportation. Members and public commenters strongly opposed the federal proposals and argued California’s current system is functioning well. The committee also heard that federal HAVA funds were not expected to be at risk because the state draws them down into an interest-bearing account. EDD reported on paid family leave, explaining that recent delays were tied to a system transition and increased claim volume, and said it was simplifying applications and adding staff and automation. Public testimony supported expanding paid family leave to chosen family. EDD also said it is prepared for possible unemployment spikes, citing a recession plan, a command center, and recent hiring. The State Controller’s Office requested funding to continue the Fiscal migration project, which would move the state’s accounting book of record to the new system by July 1, 2026; Finance and LAO had no objections, and the committee expressed support for the project’s progress. CalHR presented a proposal for a statewide recruitment, outreach, and education paid media campaign under AB 1511, saying its current advertising budget is too small to reach diverse communities effectively. The final item addressed Governor Newsom’s executive order requiring a return to office on a four-day schedule. CalHR and DGS said they were working department-by-department to assess space, parking, transit, and other logistics, but had not completed a statewide cost analysis. Members and many public commenters criticized the order, arguing it was rushed, costly, harmful to telework benefits, and potentially disruptive to workers, especially those with disabilities, caregiving responsibilities, or long commutes. No votes were taken during the hearing.

Transcript Highlights:

• Third, we think this exemption could create some efficiencies.
• Are we confident with this number, or are we likely to see cost increases?
• There is potential for those costs to increase depending on demand and reduced resources.
• What's really up for debate is what's the true cost?
• We are paying that cost right now.

Keywords: 988, house, all

Transcript Highlights:

• Pharmacy cost took off.
• <00:22:16.679> so Medicare doesn't pay for all costs so Medicare doesn't pay for all costs
• But the operating costs are there; the agency operating costs are there.
• The operating costs are there; the agency operating costs are there.
• perspective um we are being more a cost perspective um we are being more very very very efficient<02

Keywords: 928, house, all

Summary: The Department of Administrative Services presented an overview of its budget and operations, emphasizing that it is the lowest-spending agency in state government and that its general fund allocation has declined since 2019. Commissioner Arling House explained that DAS also handles back-office functions for several administratively attached boards, which has affected staffing and spending comparisons. He said the department’s current general fund spending is roughly split between retiree health and other operations, and that the presentation was based on adjusted authorized spending rather than the original budget figures. A major portion of the meeting focused on retiree health benefits and the long-term effort to control costs. Deputy Commissioner Cassie Keane described how the state moved from a projected deficit in retiree health to savings through a series of changes, including higher premium contributions, co-pay adjustments, and shifting Medicare retirees into Medicare Advantage arrangements to capture federal reimbursement. She said the state has about 12,500 retirees and spouses on the plan, with roughly 10,906 Medicare retirees and 1,580 non-Medicare retirees, and that the savings have depended heavily on federal funding and procurement decisions. She also noted that Medicare retirees pay Part B premiums and that the state has grandfathered older retirees from some premium contributions. Members asked about what the expenditures cover, why the state offers retiree health instead of simply giving retirees a payment to buy coverage themselves, and whether out-of-pocket costs changed under Medicare Advantage. Keane said the plan covers actual health claims or insurance premiums, that co-pays and maximum out-of-pocket limits remain in place, and that the state has no authority to change benefit details without legislative action. She explained that retiree health is a long-standing employee benefit that wraps around Medicare and is not collectively bargained in the usual sense, though its eligibility rules and cost-sharing have been tightened over time to better target the benefit to long-term state service. The discussion also covered vendor performance problems. Keane said Anthem recently won the contract back from Aetna, but its pharmacy subsidiary, Caroline, caused serious service disruptions. DAS responded by withholding payments, assessing more than $2 million in performance guarantees, and hiring a third-party auditor to review the pharmacy processes. The current contract runs through the end of calendar year 2026, and officials said they are watching federal Medicare Advantage reimbursement changes closely because future savings are uncertain.