Transcript Highlights:

• I've worked on budgets in Frankfurt for a number of years as a former deputy state budget director under
• , receive dollars year after year, budget after budget, and have largely avoided scrutiny.
• <00:07:28.479> is The line item language in the budget is The line item language in the budget
• of the Department of Education's budget. of the Department of Education's budget.
• and instructed the office state budget and instructed the office state budget director<00:20:02.480

Keywords: 958, all

Summary: The subcommittee met without a quorum and did not approve minutes, but heard testimony on budget line items for Data Seam and Teach for America. Andrew McNeel of Kentucky Free and representatives from the Commonwealth Policy Center argued that both programs rely heavily on recurring taxpayer support and should be re-evaluated. McNeel cited a 2020 Office of Policy and Audit examination of Data Seam, saying the program had received more than $30 million in state support since 2006, including $3.5 million in the current budget, and that the audit raised concerns about administrative overhead, alleged threats to districts, and the use of line-item language to justify sole-source contracting. He recommended suspending Data Seam funding this biennium, directing a new special audit, and requiring reimbursement of audit costs. The witnesses also urged the committee to withhold funding for Teach for America, saying the organization’s materials and history showed a commitment to diversity, equity, and inclusion that they opposed. They pointed to past statements, leadership titles, and program language as evidence that DEI concepts remained embedded in the organization, and suggested any funding should be redirected directly to school districts instead. Mike Harmon and Richard Nelson echoed those concerns, while also saying long-running programs should be periodically reviewed for efficiency. Teach for America Appalachia representatives then testified in support of the program. Executive director C.D. Morton described the organization as a teacher-preparation and leadership-development program serving rural eastern Kentucky, saying it had recruited and supported more than 325 teachers since 2011, with about 30 current core members in several counties and roughly 2,800 students impacted daily. He said the program helps fill hard-to-staff vacancies, that about 80% of teachers stay for a third year, and that many alumni remain in education. In response to questions from Representative Bojanowski about retention and cost, Morton said more than 60% of alumni are still in education, but he could not give a precise classroom-teacher retention number beyond the program’s broader alumni data.

Transcript Highlights:

• So just to orient you the Senate position uh the Senate budget general fund budget targets uh for fiscal
• <00:04:49.759> general<00:04:50.080> fund<00:04:50.400> budget Senate budget
• general fund budget Senate budget general fund budget targets<00:04:51.759> uh<00:04:51.919><
• does meet those budget does meet those budget targets.<00:05:07.039> So<00:05:07.280>
• One other meets our budget targets.

Keywords: 1183, house

Transcript Highlights:

• Pursuant to Kas budget of $30.3 million.
• Do I allocations requiring no action.
• As you mentioned, state budget director.
• >> we're looking for money for this budget >> we're looking for money for this budget
• And from round two of allocation pool.

Keywords: 0:00:02 Call to Order and Roll Call 0:00:30 Approval of Minutes 0:00:49 Information Items 0:01:54 Louisville Arena Authority 0:24:50 Project Rpt from Postsecondary Institutions - MSU 0:26:35 Project Rpt from Finance and Admin. Cabinet 0:37:52 Lease Rpt from Finance and Admin. Cabinet 0:40:13 Rpt from OFM – KIA 0:56:00 Rpt from OFM – EDF Grants 0:58:45 Rpt from OFM – OFM 1:01:46 Adjournment, 958, all

Summary: The committee first handled routine business, including a roll call, approval of the prior meeting minutes, and a set of informational reports. Those reports covered University of Louisville research equipment purchases, a Kent County school district debt issue for elementary school renovations, the University of Kentucky’s planned use of construction management risk for a new engineering building, APA certification reports for underwriter and bond counsel selection committees, and a KCNA status report on infrastructure upgrades and purchases. The main presentation was an informational update from the Louisville Arena Authority. Board representatives said the arena was created to drive economic development and reported about $1.4 billion in economic impact from 2010 to 2013. They explained the authority’s financial structure, including arena operating revenues, TIF revenues, debt service, and a long-term capital plan for major repairs and replacements. Members questioned the low net revenue figures, the long timeline before TIF revenues are projected to exceed debt service, the size of capital expenditure spikes, and the University of Louisville revenue-sharing arrangement. The authority said the $2.42 million annual UL payment is fixed under a 2017 refinancing agreement, while other amounts vary with ticket sales and related revenues. They also said the COVID-era state and Metro funds, combined with authority cash, were used to prepay debt and reduce interest, lowering the debt service schedule. The committee then considered and approved a new capital project for a new HVAC system for the student wellness center pool area. The project, presented by university staff, was approved by the board and required committee action. The committee took a roll call vote, and the project passed unanimously. Finally, Janice Thomas of the state budget office presented two tourism, arts, and heritage cabinet grid resilience projects at Kincaid Lake State Resort Park and Kentucky Down Village State Resort Park. Each project costs $7,834,600 and is funded mostly by a federal grid resilience grant, with the remainder from state utility infrastructure replacement funds and energy policy funds. Staff explained that the projects will move park electrical service ownership and maintenance to regional utilities, allowing the state to exit the infrastructure-management role while continuing to pay utility bills through normal metering. The committee approved the action item by voice vote.

Transcript Highlights:

• So, when something happens on Big Island or something happens on Oahu, I don't know that we are budgeted
• So, when something happens on Big Island or something happens on Oahu, I don't know that we are budgeted
• A portion of which has been allocated for the construction of a rehabilitation center, which will be,
• /c><00:36:00.480> on only we have the money but stay on only we have the money but stay on budget
• budget and on time? budget and on time?

Keywords: 912, senate, all

Summary: The joint committees heard HCR 66, which asks the State Building Code Council to update the state building code to allow point access block construction for residential buildings up to six stories. Testimony was generally in support, including from Housing Hawaii’s Future, the Grassroot Institute of Hawaii, and OPSD, with one registered opponent. No questions were raised, and the joint committee later adopted a recommendation to pass the resolution as is. Because the housing committee lacked quorum at that time, final action on the resolution was deferred to the housing-only agenda. On the housing-only agenda, the committee first heard HTR 78, which states the intent that housing projects qualifying for credits under Act 31 remain eligible for those credits after the act’s repeal. Testimony was in support from HHFTC and the DIY chapter, and there were no questions or opposition noted. The committee then took up Governor’s Message 592, confirming Lisa Darcy to the HPHA board. Support came from HPHA board members and several individuals, and Darcy said she accepted the nomination and emphasized her experience and interest in HPHA’s work. Members questioned her about the HPHA board’s oversight role, the 10,000-unit RFQ, and media coverage of Kuhio Park Terrace relocations; she said she supports the project, values transparency, and would push for better context and accountability, though some members felt she had not directly answered concerns about on-the-ground oversight. The committee also heard Governor’s Message 736, confirming Grant Chun to the HHFDC board. Support testimony highlighted his experience in nonprofit housing, real estate, and leadership roles, and Chun said he was pleased to serve the state. Members asked about his residence and his perspective on senior care at Hali Makua, where he said his family found the care compassionate and thorough, while noting staffing shortages. The transcript ends before any final vote on the housing-only items is shown.

Transcript Highlights:

• for putting I'm like already um for using whatever capacity you had to fight for us to get a bigger budget
• <00:03:06.159> get<00:03:06.239> a<00:03:06.400> bigger<00:03:06.640> budget
• to fight for us to get a bigger budget. to fight for us to get a bigger budget.
• Um, but given our targets, given the resources that we were allocated, which you fought very hard for
• , which you fought that we were allocated, which you fought very<00:04:44.000> hard<00:04:44.160

Keywords: 1187, senate, all

Transcript Highlights:

• We often say, 'Show me your budget, and I'll know your values,' and this budget proposal demonstrates
• a key goal is to build budget resiliency in the budget as well as in the out years.
• plan included large one-time and temporary allocations that could be pulled The budget plan included
• I also want to thank the budget chair and all of the budget chairs.
• I want to focus on the education part of the budget. I thank our budget subcommittee chair, Mr.

Summary: The Assembly Budget Committee heard opening remarks on the 2025 Budget Act, which will be amended into AB 101 and SB 101 for floor consideration. Committee leaders described the budget as a difficult compromise shaped by a $12 billion deficit, federal funding uncertainty, wildfire impacts, and rising out-year costs, while emphasizing a balance between compassion and fiscal responsibility. Each budget subcommittee chair then summarized major actions in their areas, including health care, human services, education, climate and transportation, housing and state administration, public safety, and oversight/transparency. Key policy items included delaying or narrowing some of the Governor’s proposed cuts, especially in Medi-Cal and other safety-net programs; preserving funding for dental care, women’s health, family planning, hospice, long-term care, IHSS, and services for undocumented Californians; and maintaining or expanding child care, foster care, food banks, and CalWORKs-related supports. Education actions included additional Proposition 98 settle-up, reduced deferrals, support for TK-12, teacher recruitment, literacy, mental health, preschool slots, and restored funding for UC and CSU. Other major items included housing and homelessness investments, wildfire and disaster response funding, transit loans and greenhouse gas reduction fund support, Proposition 36 and VOCA-related public safety funding, and oversight measures on federal impacts and state efficiency. Department of Finance and Legislative Analyst staff said the package makes some of the same savings moves as the May Revision but relies more on internal borrowing and fewer reductions, leaving a smaller reserve than the administration’s plan but still maintaining roughly $11 billion in the rainy day fund. Members from both parties largely supported the package while raising concerns about long-term sustainability, Medi-Cal costs, reserve use, and the need for future revenue and program review. The committee adopted the subcommittee actions by roll call, 18-6, with the roll held open for absent members and additional comments continuing after the vote.

Transcript Highlights:

• We're going to call to order the assembly's budget subcommittee on number six.
• act and $10 million from the 19-20 budget act.
• We OICR had an allocation that it came with.
• I believe it was a $15 million allocation, yes, and she's saying yes.
• Principal Program Budget Analysis, Department of Finance, Kathy McCloud, Finance Budget Analyst, Department

Keywords: 988, house, all

Transcript Highlights:

• We'll also look at how much of the general fund state budget is being allocated to pensions.
• In the first half of this graph, you can see that rates and their allocation in the budget were increasing
• And their allocation in the budget were increasing pretty significantly.
• is being allocated to pensions.
• And I'll also touch on some of the budget impacts and provide some context for how to interpret the budget

Summary: The committee approved the July minutes and then received an informational presentation from the Office of the State Actuary on the financial condition of the state retirement systems. The actuary reported that employer contribution rates are generally declining, helped by strong investment returns and reduced funding for PERS 1 and TERS 1, while funded ratios have continued to improve; on a combined basis the plans were reported at 100% funded in 2024, with open plans above 95% and legacy plans varying by system. The presentation also reviewed projected rates and funded ratios under current assumptions, noted that pension costs are taking a smaller share of the state general fund, and discussed risks from investment volatility, policy changes, and demographic experience. Committee members asked about savings from lower rates, deferred asset smoothing, and how Washington compares with other states. The committee then considered the state actuary’s recommendation on long-term economic assumptions and adopted all four recommendations by roll call votes: inflation at 3.0%, general salary growth at 3.5%, membership growth for Plan 1 funding at 1.0%, and investment rate of return at 7.25%. The actuaries explained that the inflation and salary growth increases were driven largely by higher long-term inflation expectations, while the investment return recommendation matched the current statutory assumption. Members discussed the timing of the Pension Funding Council’s decision, the effect of tariffs and inflation uncertainty, and how assumption changes would affect future contribution rates and budgets, particularly for open plans. Staff then gave an update on the LEOFF 1 study, explaining the difference between being “ahead of schedule” and truly overfunded, and summarizing responses received from DRS, the State Treasurer, and the State Investment Board on the merger and restatement proposals. DRS said both bills could be administered, though the merger bill’s COLA banking provision would be challenging until its new system is ready; the Treasurer urged caution, especially about the restatement bill and the use of one-time funds; and the Investment Board said removing assets from the trust would have some transaction costs but likely small impacts. The committee discussed whether to invite additional agencies and local government groups to testify, and staff said more responses, including from Ice Miller and the State Actuary, were expected for the October meeting. Finally, the committee heard a briefing on PERS 1/TERS 1 COLA policy and related bills from the last session. Staff reviewed the committee’s prior ongoing COLA recommendation, the SCPP-endorsed bills that would have created a one-time 3% COLA followed by an ongoing COLA, the Senate merger bill, and a separate ad hoc COLA bill. Public testimony largely supported Plan 1 COLAs and stable contribution rates, while several speakers urged caution about transferring LEOFF 1 surplus assets or merging legacy plans, and others raised concerns about climate risk and the pension fund’s investments. No further committee action was taken on the COLA item during this portion of the meeting.

Transcript Highlights:

• <00:21:49.400> for to ensure grant dollars allocated for to ensure grant dollars allocated
• While the DMA budget impact show there's a DMA impact budget to our budget shown this year, this bill
• would not impact the DMA budget.
• :25:28.560> shown a DMA impact budget to our budget shown a DMA impact budget to our budget shown
• Emergency funds are the DMA budget.

Keywords: 1187, senate, all

Summary: The committee heard an introductory presentation from Sam Daily of Believe It Canine Service Partners, a nonprofit that trains service dogs free of charge for disabled veterans. Daily described the organization’s work with veterans, including placements with MACV and a service dog at Veteran Village in Eagan, and said the group has placed 80 teams so far. Senator Howe asked whether the organization had pursued Support Our Troops grants, and Daily said it had received two SOS grants. The first bill taken up was Senate File 4172, as amended, which would expand eligibility for burial in Minnesota state veterans cemeteries to honorably discharged reservists, National Guard members, and Air National Guard members, and would allow some honor guard use for eligible people. Senator Howe said the bill corrects an inequity for Guard and reserve members who served honorably but are not currently eligible. Glenn Pence testified in support, saying the bill recognizes National Guard service and should allow those veterans to be buried with others they served alongside. MDVA’s David Swantek supported the concept but warned that expanded eligibility would increase demand, especially at Little Falls, and could shorten its projected capacity timeline from about 48 years to about 30 years. The committee adopted the A1 amendment and then laid the bill over for inclusion in the Veterans and Military Affairs Finance Omnibus Bill. The committee then heard Senate File 4026, which sets standards for MDVA competitive grants and adds accountability and residency requirements. Senator Koran said the bill would help the department review grants and ensure funds serve Minnesota veterans and families. MDVA chief of staff Dave Belfi supported the bill, saying it reflects agency feedback, aligns with existing residency rules, and does not affect CVSO, VSO, or Support Our Troops grants. The A1 amendment was adopted, and the bill was laid over for inclusion in the omnibus bill. Next, Senate File 4807 was heard, a bill to update pay for National Guard soldiers and airmen called to state active duty. MDVA and National Guard officials said the bill would simplify statute language and raise the minimum base pay for lower ranks to the E5 level, with future adjustments tied to federal pay tables. Senator Kunesh asked about funding, and staff explained the cost would come through an open general-fund emergency appropriation, estimated at about $30,000 annually but varying with activations. The committee adopted amendments to incorporate SF 4172 and SF 4026 into SF 4807, made technical corrections, and then recommended SF 4807, as amended, to pass and be referred to the full committee. Finally, the committee heard Senate File 3603, which would create a program allowing school districts to issue high school diplomas to Minnesota veterans who left school to serve during the Korean conflict or Vietnam War. Senator Rasmussen said the bill recognizes veterans who interrupted their education for service. MDVA’s John Kelly supported the bill, noting it reflects input from MDVA and the Department of Education and that similar programs exist in other states. The committee voted to recommend the bill to pass and refer it to the full committee. The meeting also began discussion of Senate File 4560, which would formalize the Commander's Task Force, but the transcript cuts off before that bill was acted on.

Transcript Highlights:

• Madam Speaker and gentlemen, the dollars that we work with here in the state, which we allocate to programs
• So while this executive has put this into place within their existing budget and their existing framework
• For example, when WorkForce Solutions presents to budget committees in the legislature or to LFC, would
• be, in statute, the report must be provided to the interim committee starting on July, and so— to budget
• amendment in any way trying to enforce or have the department, through a workforce development bill and allocation

Bills: HB111, HB103, HB109, HB128, HJM2, HJM3, HM7, HM17, HM4, HM22, HM23, HM24, HM26, HM2, HM16, HM11, HM14, HM21, HM34, HM50, HB49, HB60, HB108, HB120, HB124, HB145, HB154, HB158, HB164, HB180, HB291, HJR6, HJR7, HR1, HJM1, HM13, HM47

Keywords: water law, state engineer, civil penalty, compliance order, water rights, overdiversion, illegal diversion, groundwater storage and recovery, well license, permit violation, water enforcement, New Mexico water code, irrigation district, conservancy district, water diversion, unauthorized water sales, measuring device, district court appeal, water resources, water compliance

Transcript Highlights:

• So, Minnesota has a capital budget.
• So, Minnesota has a capital budget.
• So, Minnesota has a capital budget.
• <00:43:22.160> Um for the capital budget as well. Um for the capital budget as well.
• We budget on a two-year budget cycle.

Keywords: 1187, senate, all

Transcript Highlights:

• Let's stick to the budget. It is bud. Let's stick to the budget. It is the budget.
• It is Speaker, about a budget item. It is about the budget. No, it's not in the about the budget.
• It's not in the budget budget actually. It's not in the budget budget actually.
• within the budget the overall allocated within the budget the overall allocated within the budget the
• And on line uh budget. And on line uh budget.

Bills: HB 29, HB 125, HB 145, HB 171, HB 255, HB 50, HB 796, HB 363, HB 116, HB 491, HB 589, HB 1495, HB 368, HB 1285, HB 1905, HB 1360, HB 2002, HB 917, HB 2723, HB 2067, HB 1238, HB 2337, HB 745, HB 1188, HB 1606, HB 2003, HB 2147, HB 2391, HB 2355, HB 2546, HB 2495, HB 2818, HB 2249, HB 1749, HB 3109, HB 3228, HB 3240, HB 1507, HB 658, HB 1748, HB 1851, HB 1922, HB 2001, HB 2798, HB 107, HCR 29, SB 5, SB 262, HB 11, HJR 72, HB 106, HB 18, HB 48, HB 27, HB 37, HB 1481, HB 581, HB 1696, HB 2216, HB 1035, HB 1633, HB 742, HB 754, HB 1689, HB 1690, HB 2669, HB 391, HB 517, HB 1024, HB 1607, HB 252, HB 1716, HB 1562, HB 4116, HB 1866, HB 1741, HB 2103, HB 2637, HB 2884, HB 503, HB 1089, HB 2986, HB 972, HB 502, HB 29, HB 125, HB 145, HB 171, HB 255, HB 50, HB 796, HB 363, HB 116, HB 491, HB 589, HB 1495, HB 368, HB 1285, HB 1905, HB 1360, HB 2002, HB 917, HB 2723, HB 2067, HB 1238, HB 2337, HB 745, HB 1188, HB 1606, HB 2003, HB 2147, HB 2391, HB 2355, HB 2546, HB 2495, HB 2818, HB 2249, HB 1749, HB 3109, HB 3228, HB 3240, HB 1507, HB 658, HB 1748, HB 1851, HB 1922, HB 2001, HB 2798, HB 107, HCR 29

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:

• Uh, obviously, that road plan has more projects than what's in the budget.
• Uh, obviously, that road plan has more projects than what's in the budget.
• Uh, obviously, that road plan has more projects than what's in the budget.
• <00:47:23.520> $7.5 So, first, House Bill One allocated $7.5 So, first, House Bill One allocated
• <00:51:31.440> 7.5 program, House Bill 1 allocated 7.5 program, House Bill 1 allocated 7.5

Keywords: 00:05 Call to Order and Roll Call 01:20 Road Projects 46:30 Approval of Minutes 46:50 Railroads 57:26 Adjournment, 958, all

Summary: The Budget Review Subcommittee on Transportation met without a quorum, so it could not approve the minutes. The chair announced an Eastern Kentucky University health forum later that day and then proceeded with testimony on alternative delivery methods for road projects. Jason Sawala of the Kentucky Transportation Cabinet and Chad Laroo of the Kentucky Association of Highway Contractors were sworn in and introduced themselves. Sawala explained KYTC’s use of alternative delivery tools, including design-build, construction manager/general contractor (CMGC), and public-private partnerships (P3s). He said the cabinet’s goal is to deliver the best value to taxpayers in terms of quality, cost, and time, and emphasized that alternative delivery is most useful on projects with special circumstances such as innovation needs, specialized technology, complex constructibility, schedule pressure, or early contractor input. He cited the cabinet’s wrong-way driving prevention project as an example where design-build helped evaluate technologies and coordinate with stakeholders such as EMS and first responders. He also outlined the main tradeoffs: alternative delivery can improve collaboration and sometimes accelerate schedules, but it also brings risks related to right-of-way acquisition, utility relocation, changing scope, and the need for dedicated staff and compressed decision-making. He stressed that these methods are not a cure-all and are not appropriate for every project, while noting that traditional design-bid-build remains effective for most of KYTC’s work. Representative Branscum responded favorably, saying early contractor involvement is valuable and consistent with his experience in the vertical construction world. No votes or formal actions were taken because the committee lacked a quorum.

Transcript Highlights:

• RESOLUTION 1908 ON BUDGET STABILIZATION FUNDING AND SENATOR HOOPER.
• WE HAVE A BUDGET STABILIZATION FUND AS YOU KNOW AND HAVE DISCUSSED.
• WE ARE LOOKING AT FEDERAL BUDGET CUTS.
• EACH BUDGET YEAR AND THEN THE BUDGET STABILIZATION FUND THINK OF IT AS A RETIREMENT ACCOUNT.
• THIS IS A HUNDRED 50 MILLION DOLLAR BUDGET.

Keywords: 999, senate, all

Transcript Highlights:

• >> Transportation Economic Budget Subcommittee will come to order. Siena, please call the roll.
• We will take up the conforming legislation to the budget — documentary stamp taxes. Rep.
• We just allocate the dollar amount and they spend it.
• A budget amendment, I'm sorry. We had to get a budget amendment. >> Chair: All right.
• A BUDGET AMENDMENT I'M SORRY WE  HAD TO GET A BUDGET AMENDMENT. 139 >> Chair: ALL RIGHT ANY

Summary: The Transportation Economic Budget Subcommittee met with a quorum and heard four measures. First, the committee considered PCS for HB 1177, which originally addressed ad valorem tax exemptions for defense and aerospace operations and contract procedures for Space Florida. An amendment removed the tax exemption portion for later consideration in the tax package, and the bill then passed favorably after brief discussion about Florida’s competitiveness in the space industry. The committee next took up a conforming budget bill on documentary stamp taxes, which redirects a portion of doc stamp revenue from general revenue to the State Transportation Trust Fund. The sponsor said the change restores a $60 million transportation funding stream with a corresponding general revenue reduction, while maintaining a net zero fiscal impact overall. Members asked about why the funding was being restored and how the money would be used, and the bill passed favorably. Members then heard PCB 26-02, which re-creates the Emergency Preparedness Response Fund and adds restrictions and oversight. The proposal limits the fund to state appropriations for natural emergencies, requires legislative consultation for extended emergencies, keeps revenue in the fund, sends federal reimbursements to general revenue, adds quarterly reporting and inventory/accounting requirements, and sunsets the fund in 2030 unless reenacted. Testimony and debate focused on accountability, disaster response readiness, and concerns about prior uses of the fund; the PCB passed favorably. Finally, the committee considered HB 953, which strengthens oversight of commercial driving schools by authorizing county tax collectors to enforce related statutes and inspections. The sponsor said the bill responds to fraud and misrepresentation in the industry and would help protect driver licensing integrity, especially in South Florida. After supportive testimony from the Miami-Dade Tax Collector’s Office and a lobbyist, the bill passed favorably. The meeting then adjourned.

Transcript Highlights:

• , balance state Medicaid budgets, balance state Medicaid budgets, particularly<00:13:44.800> through
• around how the funds will be allocated. around how the funds will be allocated.
• <00:15:27.440> to So 50% of the funds will be allocated to So 50% of the funds will be allocated
• <00:28:46.480> survey KFFF's annual Medicaid budget survey KFFF's annual Medicaid budget survey
• And again, according to KFFF, this is the budget survey I was referencing.

Keywords: 00:00:22 - Call to Order and Roll Call 00:03:00 – Approval of June 25, 2025 Minutes 00:03:22 - Update on Federal Changes to the Medicaid Program 01:03:44 - State Directed Payments, Provider Taxes, and the Rural Health Transformation Fund: How Medicaid Changes Could Impact Kentucky Hospitals 01:29:42 – Public Comments 01:45:25 – Announcements 01:46:19 - Adjournment, 958, all

Summary: The Medicaid Oversight and Advisory Board met on July 30, 2025, approved the June 25 minutes, and received a presentation from Katherine Castanza of the National Conference of State Legislatures on Medicaid provisions in H.R. 1. The presentation outlined more than 20 Medicaid-related provisions, emphasizing that the largest federal savings come from work/community engagement requirements, changes to provider taxes, limits on state-directed payments, more frequent eligibility redeterminations for expansion populations, and related eligibility/enrollment changes. She said the fiscal effects are backloaded, with most reductions occurring in the later years of the 10-year window, and noted potential significant impacts on hospital payments and state financing. She also described new funding opportunities, including a $50 billion rural health transformation fund and a new home and community-based services waiver with associated grants. A substantial portion of the discussion focused on Kentucky’s pending community engagement 1115 waiver and how it would interact with the new federal requirements. Board members asked whether the waiver had been approved, what the cabinet’s contingency plan would be if CMS does not approve it, and what the timeline is for compliance. Cabinet representatives said the waiver has not yet been approved by CMS, remains under public comment, and that the state will wait for CMS guidance before moving forward; if needed, the state would amend the waiver or submit a new one. They said the work requirement must be in place by January 1, 2027, with a possible extension to 2028. Castanza also explained that expansion adults with incomes between 100% and 138% of the federal poverty level would face new cost-sharing requirements beginning October 1, 2028, and that eligibility redeterminations would move from annual to every six months starting January 1, 2027. She then walked through provider tax changes, including a moratorium on new provider taxes beginning October 1, 2026, and a phased reduction in the hold-harmless threshold for existing taxes beginning January 1, 2028, with exemptions for nursing facilities and ICF/IID providers. Board members questioned the timing and likely impact on Kentucky, and Castanza responded that the effect would depend on each tax’s current rate and would phase in over time.

Transcript Highlights:

• Like the sunflower, this budget is deeply rooted to withstand Like the sunflower, this budget is deeply
• By combining general fund dollars with monies allocated in the Fair Share supplemental budget, the Senate
• FY27 budget recommendations.
• And then in the line item in the budget, you'll see the full allocation.
• This is a good budget. I know after our A good budget.

Keywords: 995, all

Summary: The Senate opened with the Pledge of Allegiance, adopted two commendatory resolutions honoring the Plimpton Historical Society’s Deborah Sampson Day recognition and Megan’s Light’s Cystic Fibrosis Awareness Month observance, and suspended Joint Rule 12 to refer several House petitions to committee. The chamber also briefly recognized Diane Talk of the South Shore Regional Emergency Communication Center on her retirement after 30 years of dispatch service. Later, the Senate passed two local bills to enactment: House No. 4006, authorizing Dartmouth to grant an additional all-alcoholic beverages license, and House No. 473, relating to the charter of Westwood. The main business was the Senate Ways and Means presentation of the fiscal year 2027 budget, totaling about $63.3 billion. The chair described the budget as balanced, with no new taxes or tax cuts, based on a consensus revenue estimate of $986 million in growth over FY26 (2.4%), and including about $15.8 billion in federal financial participation and roughly $2.7 billion from the Fair Share surtax. The budget emphasized record local aid, including $1.376 billion in unrestricted general government aid, $7.66 billion for Chapter 70 education aid, increased minimum school aid, higher regional school transportation reimbursement, rural aid, and the revival of the Foundation Budget Review Commission. It also highlighted major investments in MassEducate free community college, food security, housing, and support for vulnerable residents. Members then engaged in extended colloquy on the budget’s major cost drivers and policy choices. Questions focused on debt service, pension and OPEB liabilities, MassHealth caseload and rising per-enrollee costs, child care funding, and program integrity in DTA and other benefit programs. The chair said debt service would be about $2.67 billion, pension payments would be $5.1 billion, OPEB would receive a $150 million payment, and MassHealth enrollment was projected at about 2 million with costs driven by acuity and medical inflation. He also said the budget includes no collective bargaining agreements and no state tax changes. Senators supporting the budget praised its investments in education, local aid, homelessness prevention, public health, libraries, and housing, while minority leaders and others stressed the need for fiscal discipline, transparency, and further work on affordability and municipal support. The Senate also received a House message on House No. 5316, which the House had nonconcurred in, and a conference committee was appointed on the disagreement.

Transcript Highlights:

• >> Um, the total allocation or the average per-pupil allocation?
• The per-pupil allocation is a lump-sum allocation.
• <02:03:19.280> So allocation is a lumpsum allocation.
• So allocation is a lumpsum allocation.
• . budget. budget.

Keywords: 910, house, all

Transcript Highlights:

• is a reality uh, with this allocation is a reality for<00:09:05.560> us.
• The Minnesota Management and Budget requested this change because ASI manages the property sites, but
• <00:26:54.880> However,<00:26:55.360> the the capital budget.
• However, the the capital budget.
• This is a budget-neutral change.

Keywords: 1187, senate, all

Transcript Highlights:

• to allocate.
• On the executive budget.
• This budget keeps the system standing. It doesn't grow it. This budget keeps the system standing.
• Half a million in the budget. Half a million in the budget? Yes, sir. Is it in the budget already?
• It's in the budget. $1.5 million is in the budget.

Keywords: 974, senate, all