Transcript Highlights:

• We're reducing their revenue by about 30%, and as I understand I understand, on average, most cities
• spend over 50% of their money and revenue on police protection and firefighters.
• The cities obviously get sales tax revenue too, and that's not covered by this.
• Committee Substitute Senate Bill 9 relating to the calculation of the voter approval tax rate for certain
• Senate Bill 9 relating to the calculation of the voter approval tax rate for certain taxing units.

Bills: SB15 , SB9 , SB7 , SB1 , SB2 , SB67 , SB15 , SB9 , SB7

Transcript Highlights:

• I have confirmed with the Department of Revenue that all 114 counties in the state have the personal
• The revenue has been balanced out.
• The language that confuses me is where it says the revenue neutral.
• So the revenue they got last year. Right.
• The gentleman from Pike asked, “And what do they use that revenue for?”

Summary: The House established a quorum and then took up several bills for perfection and printing. House Bill 2189, sponsored by the Jasper member, would allow five-year vehicle registrations, eliminate the old even/odd model-year registration rule, and limit the five-year option to vehicles six years old or newer. Members discussed how the bill would interact with emissions, safety inspections, insurance verification, and county tax collection systems. House Amendment 1, which set the five-year fee at $45, was adopted, and the bill was then perfected and printed. The chamber next considered House Committee Substitute for House Bill 1790, a ballot-language measure sponsored by the St. Louis County member. The bill requires clearer ballot wording for local tax levies, including stating levy amounts in dollar terms, alphabetic labeling of propositions, disclosure when a measure would nullify a prior sunset, and a rollback rule tied to reassessment years and voter-approved levies. Members generally supported the transparency goals, and a drafting correction amendment adding a comma was adopted before the committee substitute was perfected and printed. House Committee Substitute for House Bill 2178, sponsored by the Pike member, drew the most extended debate. The bill would limit commercial property assessment increases to 15% per reassessment cycle, require a physical inspection if increases exceed that threshold, and require Board of Equalization decisions by the end of September or revert to the prior year’s assessment. Amendments were adopted to add short-term rental protections so assessors cannot reclassify residential short-term rentals as commercial property, to incorporate ballot-language provisions from other bills, and to add taxpayer protections requiring clearer assessment notices, faster refunds, and litigation-cost recovery in some successful appeals. The body adopted House Amendment 1 by roll call, 92-43 with 5 present, and later adopted House Amendments 2 and 3; House Amendment 4 was then taken up for further discussion at the end of the transcript.

Transcript Highlights:

• After these exemptions to raise state revenue.
• I think last year I calculated $1.6 million to Iron County.
• Sales tax revenue for the year 2022, which was prior to this legislation, our overall income revenue
• Sales tax revenue for the year 2022, which was prior to this legislation, our overall income revenue
• Despite the loss of revenue, the demand for services has not changed.

Committee: House Rules - Legislative

Transcript Highlights:

• You may calculate it, let's say, at 7.2 in.
• creative revenue source that does not require increased fees on all Minnesotans.
• It wouldn't impact fee structuring; it just impacts the amount of revenue that's in the account.
• </c><01:19:22.840><c> that's</c> million per year of Revenue that's million per year of Revenue that's
• </c> it just impacts the amount of Revenue it just impacts the amount of Revenue that's<01:19:50.400>

Bills: HF198 , HF269 , HF185 , HF303 , HF305 , HF189

Committee: House Transportation Finance and Policy

Transcript Highlights:

• We also hope that revenue bonding authority could be added.
• And that internal revenue that comes to the state, local communities, local governments—growth begets
• The port's aviation revenues last year exceeded a half billion dollars.
• The current language gives other public entities the authority to dictate use of port revenues, staff
• How do you calculate this, right?

Summary: The committee heard public testimony on three bills. SB 5652 would require the University of Washington, Commerce, the King County Department of Public Health, and the Port of Seattle to study and mitigate aviation-related air quality and noise impacts around Sea-Tac, create a work group and grant program, address failed noise insulation “port packages,” and require a state auditor review. The sponsor and supporters from affected cities and community groups described serious health and quality-of-life harms from airport noise and pollution, while the Port of Seattle, Washington Public Ports Association, and AWB opposed the bill, arguing it would impose new mandates, raise cost and governance concerns, and interfere with airport operations. Testimony on the bill was reopened after other business and then closed; no vote was taken. SB 6124 would direct Commerce to study an appliance affordability index that would consider repairability, maintenance, recyclability, performance life, and related factors. The sponsor said the bill is meant to help consumers compare lifetime costs and repair options, drawing on family experience with durable appliances. Consumer and environmental advocates supported the idea as a way to improve transparency and encourage repairable products, while industry groups opposed a state-specific index, warning it would create a patchwork of standards and compliance burdens. The hearing closed after testimony, with no action reported. SB 5466 would create a Washington Electric Transmission Authority, give it powers to support transmission development and, in some cases, acquire property and own or sell transmission projects, and provide a SEPA categorical exemption for certain transmission upgrades with tribal and resource-protection conditions. Supporters from clean energy, labor, utilities, and state agencies said the bill is needed to expand grid capacity, improve reliability, speed clean energy interconnection, and create jobs, though many asked for bonding or financing authority and refinements to the exemption language. Some utilities and business groups supported parts of the bill but opposed state ownership or said the authority should focus more on permitting and coordination; others raised concerns about ratepayer risk and duplication. The hearing closed after extensive testimony, with no vote announced.

Transcript Highlights:

• revenues, and revenues, income revenues, and enterprise<04:14:17.760><c> revenues.
• </c> enterprise revenues. enterprise revenues.
• So, don't confuse revenues with distribution. You can change the revenues.
• </c> they got less revenue. I take that back. they got less revenue. I take that back.
• </c> revenues, the distribution is harder. revenues, the distribution is harder.

Committee: House Education Funding

Transcript Highlights:

• , if that helps to clarify that situation. ...that would be calculated into the total cost of the project
• It's based on state revenue formula. Sure, I'm going to defer here.
• Chairman, committee, it's based on a state revenue formula that the State Tax Commission comes out of
• So based on whatever the state revenue is, we get a portion of that after everything else gets taken
• It's based on a total, once they figure out exactly what the total state revenues are.

Committee: House Education

Transcript Highlights:

• Chairman, and I'm really that the tobacco um uh revenues and that the tobacco um uh revenues and sales
• </c> Um, did you actually do a calculation Um, did you actually do a calculation looking<00:15:43.440
• Okay, next I have Michael Rolo. up that revenue from what bucket? up that revenue from what bucket?
• ,</c> this is the best way to raise revenue, this is the best way to raise revenue, not<00:53:31.520>
• </c> are gaining revenue and our businesses are gaining revenue and our businesses are<00:54:38.559><

Committee: House Ways and Means

Transcript Highlights:

• My question is, it doesn't show any generation of revenue.
• And then I see no revenue increase.
• It's just revenue explanation. So it basically is saying that... “Where’s that at?”
• “It’s just revenue explanation. So it basically is saying that... Oh, $750.5.
• And I know that there’s other fracture gradient calculation methods.

Summary: The committee heard House Bill 706 by Representative Riser, which would set a more detailed process for commercial saltwater disposal wells, including site-specific modeling and pressure review. Riser and industry witnesses argued the bill would provide clearer, more predictable rules for operators who have faced long delays and changing requirements, while Department of Conservation and Energy officials said they are already developing guidance and that any pressure standard must remain site-specific to avoid fracturing confining layers, protecting drinking water, and staying within EPA primacy requirements. The department emphasized that geology varies widely across Louisiana and that a fixed pressure number in statute could be unsafe in some locations. Members also discussed the fiscal note, the need for additional staff, and whether the bill would tie the department’s hands or force approvals; witnesses said the bill’s modeling requirements were conservative, but opponents warned the statutory pressure ranges could conflict with site-specific safety determinations. After a technical amendment was adopted, the committee voted on the bill and it failed on a 6-6 tie. The committee then took up House Concurrent Resolution 4 by Representative McCormick, which would suspend Louisiana’s deer baiting ban for 18 months in areas affected by chronic wasting disease (CWD). McCormick and Hunter Nation representatives argued that baiting bans have not stopped CWD in other states, that deer feeders and food plots are part of hunting culture, and that Louisiana should rely on science and a more flexible approach. They cited Wisconsin as an example where CWD spread despite long-standing feed bans and said there has been no proven human transmission. Department of Wildlife and Fisheries officials said bait bans are one of the few tools available to reduce artificial congregation of deer and help limit disease spread, and they explained that the department is also working with a CWD task force and another proposal that would tie restrictions to a 1.5% prevalence threshold rather than an across-the-board suspension. The discussion ended with the department providing information on the impacts of both measures, but no final action on HCR 4 was recorded in the transcript.

Transcript Highlights:

• The eligible space for new construction is calculated by comparing the district's current space-wide
• Because this exclusion would reduce the amount of counted space compared to SCAP's calculation of the
• Because this exclusion would reduce the amount of counted space compared to SCAP's calculation of the
• As originally drafted, this bill would have backfilled any shortfall in federal revenues with additional
• After learning that... ...any shortfall in federal revenues with additional state funding.

Bills: HB2470 , HB2353 , HB2420 , HB2338

Committee: House Capital Budget

Keywords: HB2470, school construction assistance, capital budget, school facilities, on-base schools, military base schools, military installations, public school construction, school plant projects, state funding assistance, superintendent of public instruction, OSPI, school capital funding, instructional space, school district construction, alternative learning experience, ALE, free and reduced-price meals, special housing burden, district growth

Transcript Highlights:

• I am nonpartisan staff here at LRC for the Appropriations and Revenue Committee.
• </c><00:07:24.639><c> based</c><00:07:24.960><c> upon</c> $250 million was calculated based upon $250
• million was calculated based upon reasonable<00:07:26.080><c> ramp</c><00:07:26.400><c> up</c><00:07
• Nonetheless, a revenue stream to sustain operations of a building like that.
• Nonetheless, a revenue stream to sustain operations of a building like that.

Summary: The committee met with a quorum to hear a recap of the 2021 special session legislation, Senate Bill 5, and then receive testimony from the Secretary of Economic Development on the Blue Oval SK project and related economic development issues. Staff explained that Senate Bill 5 appropriated five amounts from the budget reserve trust fund for a project tied to a minimum $2 billion investment: $350 million for forgivable loans through the Kentucky Economic Development Finance Authority, $10,639,600 to pay off a Hardin County loan tied to 47 tracts of property, $20 million for Bluegrass State Skills Corporation training grants, $5 million for KCTCS training grants, and $25 million for a KCTCS on-site training center. Staff also noted there were no job-related requirements in the bill itself. The secretary said the Blue Oval SK incentive was structured as a $250 million forgivable loan rather than the state’s usual pay-as-you-go incentives, with clawback provisions tied to jobs, wages, investment, and changes in ownership or operations. He said the project had already exceeded the $2 billion investment threshold, that corporate guarantees were required from SK On and Ford, and that the agreement’s compliance period begins in December 2026 with payments starting in March 2027 and running through 2038. He said the state’s goal after the joint venture dissolution was to protect taxpayers, support affected workers, and preserve future job creation, while also ensuring the money would be repaid if performance targets are not met. Members asked about the workforce impact, the training programs, and whether the jobs targets would be revised. The secretary said the project had about 1,850 workers at the site, with both production and salaried employees affected, and described state-led job fairs, a job portal, and other rapid-response efforts to help displaced workers find new jobs or training. He said Ford had agreed to continue discussions, invest an additional $2 billion in the site for energy storage solutions, and pursue roughly 2,100 new jobs, while the state sought to keep the company accountable for the full repayment obligation if jobs are not created. One senator raised broader concerns about mega-projects displacing small businesses and creating infrastructure burdens in surrounding communities.

Transcript Highlights:

• categories and the status of those revenue categories.
• And this is reflected in the IIT revenue picture.
• As you can see, withholding... ...is reflected in the IIT revenue picture.
• In the dark blue bars are revenue, the white bars are spending.
• So you've got a huge pressure pulling down your sales tax revenues.

Summary: The Finance Advisory Committee met for its January session to review Arizona revenue and economic conditions ahead of the budget process. JLBC staff presented the January baseline, noting projected positive cash balances through FY 2029 and about $577 million to $578 million in discretionary capacity, but also highlighting major unfunded items not included in the baseline, including federal tax conformity costs, ongoing one-time spending for state employee health insurance and school facility repairs, and administrative costs tied to H.R. 1. Staff also reviewed revenue trends by category, saying FY26 general fund revenues were running above forecast overall, with strength in retail, restaurants and bars, and individual income tax payments, while contracting and utility-related collections were weaker or flat. They also compared JLBC and executive revenue assumptions and discussed the executive’s proposed revenue changes, including border reimbursement assumptions, sports betting tax changes, data center-related tax and fee proposals, and other non-general fund measures. A major topic was income tax conformity with recent federal tax law changes. Staff explained that current Department of Revenue forms assume “straight conformity,” but the governor’s proposal and vetoed SB 1106 do not fully match those forms, creating possible amendment and timing issues for taxpayers and the department if the legislature adopts a different policy. Members also discussed the difficulty of forecasting revenues amid volatile monthly collections and uncertainty over how much of the current revenue strength will persist in the second half of the fiscal year. Danny Court of Elliott Pollack gave a broader national and state economic outlook, arguing that the U.S. has avoided recession despite several warning indicators, largely because of AI and data center investment, while employment growth has softened and inflation remains above the Fed’s target. He said Arizona remains relatively resilient, with strong population and job pipelines, but faces housing affordability constraints, slowing employment growth, and a more concentrated population forecast in the Phoenix area. Panelists generally agreed that Arizona remains in better shape than many states, though they cautioned that job growth is slowing, population estimates may be revised, and budget and revenue forecasts should be treated carefully given uncertainty in the data. No votes or formal actions were taken.

Transcript Highlights:

• And then we get down to the funding formula revenue.
• And then we get down to the funding formula revenue. And that's identified as every credit is.
• So when we say funding formula revenue, you're talking the higher ed funding formula.
• Jamie, one, I've another kind of calculation question for you.
• I have another calculation question for you.

Committee: Joint Higher Education Institutions Committee

Transcript Highlights:

• All the revenues come into my account. office.
• Of those revenues come to support the Small and Rural Hospital Relief Program.
• This was mostly due to declining tobacco tax revenue.
• One is a per unit measure that looks at the net patient revenue with a case mix adjustment.
• So did that factor into your calculations in choosing a company to make this decision?

Transcript Highlights:

• The state's expenditures are exceeding revenues at a nearly unprecedented time of revenue growth.
• tradeoffs when revenues do drop, which they will.
• Specific revenue proposals that will directly support Specific revenue proposals that will directly support
• 99 tobacco revenues.
• That revenue stream kind of is exhausted. Then it's just fully relying on ISRP revenues, right?

Summary: The Assembly Budget Subcommittee on Health held a May Revision hearing covering several health-related budget proposals and broader concerns about the state’s budget structure. The Chair opened by praising some May Revision changes, such as added health IT funding, county administration support tied to Medi-Cal changes, a delay in Medi-Cal cuts for some lawfully present immigrants, and additional support for Covered California subsidies, while criticizing proposed increases in Medi-Cal premiums, changes to senior eligibility, the lack of a Medi-Cal dental solution, and other reductions affecting counties, mobile crisis units, workforce incentives, and physician shortages. The Legislative Analyst’s Office said the state’s budget condition remains weak despite progress on the structural deficit, and the Department of Finance said the May Revision uses a mix of reductions, reforms, revenue proposals, and fund shifts to cut out-year deficits. The committee first heard Department of State Hospitals proposals, including adjustments to county bed billing authority, contract exemption language for online clinical/pharmacy subscriptions, reversion of unspent funds, a revised Metro Central Utility Plant replacement project, electronic health record implementation, and workforce development funded partly through Behavioral Health Services Act resources. DSH also described savings and realignments in incompetent-to-stand-trial and conditional release programs, including extending the independent placement panel program and shifting funds to support additional bed capacity and a mental health rehab center. Members asked about the use of BHSA funds for workforce programs, and the department said the proposal would replace General Fund support with BHSA reimbursements. The Emergency Medical Services Authority proposed funding for statewide behavioral health crisis response guidance and for enterprise system development, and the Department of Managed Health Care proposed modernization of its complaint system and claims-settlement data system to improve oversight and comply with AB 3275. The largest discussion centered on the administration’s BHSA spending plan under Proposition 1, including state-directed prevention, workforce, and other uses, plus General Fund offsets for existing programs. The LAO questioned whether some proposed offsets fit Proposition 1’s non-supplant and eligible-use requirements, while the administration argued the uses were consistent with the measure and that the state-directed share can be adjusted annually. The Commission for Behavioral Health’s proposals drew the most public and member concern. The administration proposed cutting the commission’s Innovation Partnership Fund from $20 million to $10 million and reducing the Community Advocacy Program by $6.7 million, while redirecting BHSA dollars to other state purposes and direct services. Commissioners, advocates, and several members argued the cuts would weaken community voice, reduce support for underserved populations, and disrupt grants already in process; they also objected to using BHSA funds to backfill General Fund commitments. Public commenters, including youth, disability, behavioral health, LGBTQ, tribal, veteran, immigrant, and community-based organization representatives, overwhelmingly opposed the cuts and urged preservation of prevention, advocacy, mobile crisis, and innovation funding. No votes or final actions were taken during the hearing.

Transcript Highlights:

• or coming from general revenue.
• Recurring general revenue is expected to be reduced by $16 million.
• It reduces the tax on slot machine revenues from 35% to 34%.
• And it reduces the gross receipts tax on card room revenues from 8% to 5%.
• It creates three new distributions for doc stamp tax revenues...

Transcript Highlights:

• And I don't know if we have the calculation, how the calculation is done, and that might be a really
• The cap calculations last year, The cap calculations last year was the first year, as you know.
• The property tax relief calculation comes from two numbers.
• Okay, so this is our main tax statement calculation menu.
• And then we have three calculated tax values. And then four rolls all. Calculate the tax values.

Summary: The subcommittee of the Tax Reform and Relief Committee met to begin its study of the feasibility and desirability of revising the content of the real estate tax statement to improve property tax transparency. Legislative Council staff reviewed the study directive under House Bill 1176 and the statutory requirements for tax statements, including required line items such as true and full value, mill levy, legislative tax relief, primary residence credit, and the Legacy Fund portion of that credit. The Tax Department then explained how the current uniform statement is prescribed and approved, and noted that changes are typically driven by statute and implemented collaboratively with counties and vendors. County officials from the North Dakota Association of Counties described the full annual tax cycle, from county budgeting and valuation notices to budget hearing notices, levy certification, cap calculations, and final tax statement mailing. They emphasized that counties and auditors do extensive coordination with taxing districts and neighboring counties, and that the process is labor-intensive and often manual. Members discussed the limited public response to budget notices and tax statements, the difficulty of explaining the legislative tax relief line, the 3% cap and valuation issues, and whether more frequent assessments or different timing would improve understanding. Several members and witnesses noted that many taxpayers only engage when they receive their final bill, and that clarity may be more important than adding more detail. NDACO also presented a rough cost survey from eight counties, estimating an average tax statement cost of about 74 cents and a statewide total near $600,000 for printing and mailing tax statements alone, with outsourcing generally cheaper than in-house printing. Witnesses noted that House Bill 1176 added other mailings and notices, increasing county workload and cost beyond the statement itself. The committee then heard from software vendors, who explained how their systems handle tax billing, budget notices, valuation notices, primary residence credit processing, and tax levy calculations, and they identified the 1600/1685 primary residence credit and discount interaction as a current programming challenge. No votes were taken; the meeting was informational and focused on gathering testimony and identifying issues for possible future recommendations or bill drafts.

Transcript Highlights:

• </c> uh their revenue for income tax 60%. uh their revenue for income tax 60%.
• , not the base revenue, but the additional revenue into the Fish and Game Fund.
• services revenues.
• </c> your insurance premium tax revenues? your insurance premium tax revenues?
• ><c> assumed</c><02:58:17.439><c> revenue</c> projected revenues, the assumed revenue projected revenues

Committee: Senate Finance

Transcript Highlights:

• the Washington College Grant amount for private not-for-profit four-year institutions would be calculated
• The College Bound Award amount for private, not-for-profit, four-year institutions would be calculated
• This would have an indeterminate decrease on the potential revenue from penalties collected.
• But this would direct 80% of the revenues back to addressing low-income patients.
• But this would direct 80% of the revenues back to addressing low-income patients.

Summary: The committee heard public testimony on Substitute Senate Bill 5828, which would restore and adjust Washington College Grant and College Bound Scholarship award levels for students attending private, not-for-profit four-year institutions. Staff explained the bill would set the awards at 90 percent of the regional and state college rate rather than 50 percent of the research rate, with an estimated fiscal impact of $3.3 million in fiscal year 2027 and $18.6 million over four years. Testimony was largely in support from private college presidents, students, and school counselors, who said the bill would help low-income and first-generation students and preserve access and enrollment choices; some public college student representatives said they did not oppose the bill but argued that cuts to public-school aid should be restored first. The committee also heard Substitute Senate Bill 5911, which would prohibit DCYF from using benefits or funds of youth in extended foster care as reimbursement for their cost of care beginning in 2027, while requiring support for benefit management and payee arrangements and allowing protected accounts such as ABLE accounts. Staff estimated a net fiscal impact of $608,000 in fiscal year 2027 and $2.2 million per biennium thereafter. Testimony in support said the bill would end the practice of withholding SSI and other benefits from youth in care and better support disabled youth transitioning to adulthood. Members asked questions about fiduciary responsibility and representative payee arrangements. In executive session, the committee adopted amendments and advanced several bills. It adopted Amendment Clark 350 to House Bill 2689, raising the required provider response rate for the child care market rate survey to 65 percent, and then reported the bill out with a due pass recommendation by a vote of 18-11, with two excused. It adopted Amendment H-3743.1 to Engrossed Second Substitute Senate Bill 5395 on retrospective prior authorization denials and reported that bill out unanimously. It also adopted Amendment Pool 272 to Senate Bill 5420 and reported that bill out unanimously. For Engrossed Second Substitute Senate Bill 5496, the committee adopted several amendments clarifying scope and penalties but rejected amendments that would have delayed the bill or replaced it with a study; the bill was then reported out with a due pass recommendation. The committee also heard amendment briefings on other bills, including 5981, 6026, 6160, 6184, and 6211, but deferred action on some items heard that morning.

Transcript Highlights:

• students for purposes of determining each county school district's net enrollment that's used to calculate
• It requires that the calculations for additional funding generated from the additional weightings be
• made after all other calculations.
• It requires that the calculations for additional funding generated by the additional weightings be made
• after all other calculations, and the definition of net enrollment provides that the additional funds

Committee: Senate Finance