Transcript Highlights:

• But about inflation. Mm-hmm.
• Does it catch you up to inflation from 2019? Are you getting enough to account for inflation?
• , will this bill still lead to inflation?
• So it really impacts families. It does.
• by steep inflation.

Bills: HB2 , HB2

Committee: House Public Education

Keywords: public education, teacher compensation, certification, funding, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, disaster preparedness, emergency management, flooding, mass fatality, mass casualty, fatality tracking, body recovery, autopsy, justice of the peace

Transcript Highlights:

• Likely some of the impacts of tariffs are starting to come through now in inflation.
• The last few reads likely show some of the impacts of tariffs starting to come through now in inflation
• As far as inflation goes, I've already sort of mentioned this. We expect to see higher inflation.
• As far as inflation goes, I've already sort of mentioned this. We expect to see higher inflation.
• Global events that impact the U.S. and certainly our state economies and fiscal impacts, my recollection

Committee: House Finance

Summary: The Finance Committee work session began with a presentation from Dr. Reich on the Economic and Revenue Forecast Council (ERFC), explaining how the state’s revenue forecasts are built from economic models and how they are used to support the budget process. He described the main revenue sources for state operating funds, the ERFC’s membership and quarterly public process, and the factors affecting the latest forecast, including slow employment growth, weak taxable sales, higher inflation pressures, tariffs, federal spending uncertainty, and the federal shutdown. He said the September forecast was reduced, mainly because of lower sales tax and real estate excise tax collections, with smaller changes to capital gains and other funds, though revenues were still roughly on track and the base case remained slow growth rather than recession. Committee members asked about whether Washington’s economy can lag national downturns, and Dr. Reich said the timing and severity of impacts can differ by recession and sector. Representative Chase asked what happens if revenues fall short of expenses, and Dr. Reich said that is a budgeting question for elected officials rather than the forecast council. Members also noted the importance of the forecast for policy decisions, especially given slowing employment and manufacturing. The committee then heard from the Department of Revenue on implementation of Senate Bill 5814, which expands retail sales tax to certain services effective October 1, 2025. Steve Ewing explained the existing sales and use tax framework, sourcing rules, reseller permits, and the multiple points of use exemption, then walked through the new taxable categories, including live presentations, temporary staffing, investigations and security services, IT services, custom website development, advertising services, and custom software changes. He described DOR’s implementation efforts, including listening sessions, a public landing page, notices to taxpayers, and interim guidance, and noted a six-month grace period for certain pre-existing contracts but no general penalty or interest relief. Committee members raised concerns about taxpayer confusion, the burden on new taxpayers, sourcing and allocation issues, and the difficulty of determining liability in cases like speakers, nonprofits, and advertising services. DOR said it would continue outreach, answer ruling requests, and likely seek technical cleanup legislation in the 2026 session. The committee took no formal votes and adjourned after the presentations and questions.

Transcript Highlights:

• If you reduce that impact fee, the impact fee should be at cost and therefore you would hurt the city's
• SB 14, as I understand, only will impact those political subdivisions that are already paying an impact
• We're going to impact public education. We're going to impact public safety.
• So it's fair to say the rhetoric criticized inflation is inflated. I would say so.
• This will impact our economy; it will impact our local businesses, and that is concerning.

Bills: HB26 , HB73 , SB 14 , HB46

Committee: House Intergovernmental Affairs

Transcript Highlights:

• This shows the impact.
• The impact, this top chart, is the impact of that gas tax increase going all the way back to 1923.
• And then the impact of the legislation in 2020, those two five-cent increases, and then the impact of
• the CPI-U inflation factor.
• Yeah, and then it was indexed to whatever inflation the inflation rate is.

Summary: The Assembly Transportation Committee first took up three highway naming resolutions on its consent calendar: ACR 109, SCR 78, and SCR 90. The committee approved the consent calendar with 11 aye votes and no no votes, then adjourned the bill-hearing portion. Members also recognized committee science fellow AJ Mendeola for his service, noting his contributions to bill analysis and staff support. The committee then held an informational hearing on alternatives to the gas tax, focused on the projected decline in fuel-tax revenue and the need for a more sustainable transportation funding model. The chair and invited experts described how inflation, improved fuel efficiency, and growth in electric and other alternative-fuel vehicles are eroding gas-tax revenues. Presenters from the National Conference of State Legislatures and the University of California discussed state options such as higher or indexed gas taxes, EV registration fees, road usage charges, delivery fees, public EV charging fees, transportation network company fees, and managed lanes, emphasizing tradeoffs among revenue adequacy, fairness, administrative cost, and public acceptance. Committee members raised concerns that mileage-based fees or EV fees could function as new taxes on commuters and lower-income drivers, especially if the gas tax is not repealed. Presenters responded that road usage charges are generally intended as replacements for the gas tax, not additions, and argued that mileage-based systems better preserve the user-pays principle while being less tied to vehicle fuel efficiency. They also noted that flat EV registration fees are easy to administer but can be less equitable because they are not linked to actual road use. Officials from Hawaii, Utah, and Oregon described their state programs and policy choices. Hawaii said its new road usage charge began July 1, 2025, for EVs, offers a choice between a per-mile charge and a flat annual fee through 2028, and will transition to mandatory EV participation before expanding to all light-duty vehicles by 2033. Utah described its voluntary EV road usage charge program, quarterly reporting, privacy protections, and legislative scenarios for removing the cap or making participation mandatory. Oregon outlined its constitutional cost-responsibility framework and broader transportation funding challenges, including reliance on user fees and limited use of general-fund support.

Transcript Highlights:

• </c> little bit in terms of the inflation little bit in terms of the inflation adjustment<00:09:15.680
• </c><00:11:51.200><c> Uh</c> change in inflation is above 3%. Uh change in inflation is above 3%.
• Uh had grown at the rate of inflation.
• </c> regarding the estimated budgetary impact regarding the estimated budgetary impact of<00:21:17.760
• </c> big increase under the word inflation? big increase under the word inflation?

Summary: The committee met for its fifth and final Interim Joint Budget Review Subcommittee on Education meeting, but did not initially have a quorum and approved the minutes later when enough members were present. The Council on Postsecondary Education, represented by President Aaron Thompson and Vice President Bill Payne, opened with condolences for the UPS crash victims and then presented higher education budget recommendations for the 2026-2028 biennium. Thompson emphasized the return on investment from state support for higher education, citing gains in retention, enrollment, persistence, graduation, reduced time to degree, lower student debt, and expanded dual credit participation, while noting that affordability and access remain priorities. Payne outlined CPE’s operating funds request, including $43.3 million in the first year and $86.6 million in the second year for inflation adjustments, plus $30 million and $45 million for performance funding. He said the inflation request would apply across the board to institutions to offset rising costs, and that the KSU land grant match would not need additional funding because the state has already met the matching requirement. He also explained that state support for educating students has not kept pace with inflation over time, creating pressure on institutional budgets and tuition, though tuition increases have been held to historic lows in recent years. A major portion of the discussion focused on the performance funding model and how it affects smaller institutions. CPE proposed two approaches to address institutions that have received little or no performance funding, especially Kentucky State University and Morehead State University. The first approach would create a $20 million minimum distribution pool, providing $1.95 million to each university and $4.4 million to KCTCS, with the goal of giving smaller and rural institutions a base level of support. The second approach would provide direct appropriations totaling a little over $5.6 million to Kentucky State, Morehead State, and five community colleges that have not been receiving performance funding. Members, especially Representative Tipton and Senator West, questioned how the model had treated small schools over time, and CPE officials explained that the original small school adjustment was not large enough to prevent KSU and Morehead from effectively being left out of the distribution. No votes were taken.

Transcript Highlights:

• , how their business might be impacted.
• And also... ...how their employees are impacted, how the business might be impacted.
• , how the business might be impacted.
• path. ...which is the least impactful path forward.
• There's also an impact on traffic.

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Summary: The Joint Oregon-Washington Legislative Action Committee met for a work session and public hearing on the Interstate 5 bridge replacement program. Program staff outlined major milestones, including the recent biological opinion, the Coast Guard’s opening of a public comment period on the Navigation Impact Report, expected decisions in early 2026 on navigational clearance and the final supplemental environmental impact statement, and a possible amended record of decision in 2026. They also discussed the Bridge Investment Program grant amendment deadline, the need for an initial finance plan, and ongoing community outreach and contractor engagement. Greg Johnson announced he was stepping down as program administrator, and Carly Francis introduced herself as interim administrator. A large portion of the meeting focused on design and cost questions. Staff said the program is studying fixed and movable spans, single- and double-deck configurations, and one versus two auxiliary lanes, with final recommendations to be made through the federal environmental process. They said the Coast Guard’s decision is central to what bridge configuration is permittable and to the timing of the updated cost estimate, which has not yet been released. Members pressed for more detail on cost drivers, potential impacts to businesses upriver, and whether the states would need to seek additional funding. Staff said they had reached agreements with four impacted river users, but the underlying evaluation materials are protected and not publicly releasable. The committee also reviewed transit-related questions. Staff explained that light rail remains part of the modified locally preferred alternative and that ridership and operations estimates are being updated using federal modeling methods. They said projected opening-day transit operations and maintenance costs have dropped from an earlier estimate of $21.8 million to about $10.3 million annually because the current model assumes lower frequency, with Oregon and Washington shares split by geography and fare recovery. Members raised concerns about TriMet’s financial stability and the need for a funding plan by fall 2027, ahead of a planned federal transit funding application in fall 2028. During public testimony, several speakers criticized the delay in releasing a new cost estimate and argued the project scope should be reduced if costs continue to rise. Testifiers from City Observatory and the Just Crossing Alliance said the project appears to be avoiding bad news, urged the committee to consider scope reductions, and questioned whether the active transportation and freeway components align with the project’s core purpose. The meeting ended with thanks to Johnson for his service and a transition to public hearing testimony.

Transcript Highlights:

• inflation by the legislature.
• for basic care providers as the appropriated inflation.
• So when we make a provider adjustment, it impacts providers in the same way.
• So, Sarah, on, it kind of explains the rate inflate for inflation.
• You have another additional inflators.

Committee: Senate Appropriations - Human Resources Division

Summary: The Senate Appropriations HR Division met with all members present to review the medical services portion of the HHS budget. Sarah Aker, Executive Director of Medical Services, walked the committee through several budget items, including HCBS cost-to-continue adjustments, the DD bed assessment, expansion of value-based purchasing, targeted rate increases for home health and QSP services, and the cross-disability waiver. Members generally supported the targeted increases for home health and QSP, and Aker explained that the cross-disability waiver funding would support startup work, service design, and infrastructure ahead of a planned July 1, 2028 implementation. The committee spent significant time on rate-setting and provider payment issues. Members discussed ambulance rate rebasing, with several senators expressing concern that the proposed increase was too high relative to peer states; the committee ultimately moved toward reducing that item to $1 million rather than zero so it could be revisited in conference committee. They also discussed a House-added critical access hospital networking grant and similarly leaned toward reducing it to $1 million. Aker explained the department’s value-based purchasing plans, including use of a vendor selected through RFP, and clarified how the department’s existing Medicaid managed care and hospital value-based programs work. A major portion of the meeting focused on long-term care and basic care payments, including a House-added extension of the $5 per day basic care add-on and a proposed shift in nursing facility incentive grants toward a withhold-based model. Senator Mathern indicated he would bring an amendment to delay or modify the withhold change, and Aker said the department would prefer language that directly addresses whether a withhold may be implemented. Members also discussed 1915(i) services, FMAP changes, the Medicaid legacy system modernization carryover, and a House-added legislative intent section on medical assistance. The committee adjourned for the morning with plans to return later to continue Human Services budget work and revisit unresolved items in conference committee.

Transcript Highlights:

• So, what is the impact of that gap?
• Also, to help districts keep pace with inflation in the future...
• By that time, inflation would be 20%, roughly.
• Inflation is up by 25.
• Again, 25% inflation. That's. should be $1.25 now.

Committee: House Appropriations - S/C on Article III

Transcript Highlights:

• That's the impact of House Bill The first one is line seven.
• That's the impact of House Bill 559 being signed into law.
• Since then, we’ve seen the impact statements. You’ve all seen those.
• It included contract inflation. It included...
• But it's also the impact... ...with our compliance officer.

Summary: The committee first received updates from LSO on the latest green sheet, including the revenue impact of House Bill 559, recent cash transfers, and the Idaho Budget Rescissions Act for FY 2026. Members then moved through a series of FY 2027 maintenance budgets, beginning with the legislative branch. The committee discussed the statewide 2% reduction layered on top of the governor’s recommendation, benefit-cost adjustments, and how those decisions were being built into the maintenance budgets. The legislative branch budget passed, followed by unanimous-consent adoption of related language. The committee next considered public safety, natural resources, health and human services, economic development, judicial branch, constitutional officers, and general government budgets. In each case, analysts explained how rescissions, ongoing base reductions, and statewide adjustments were incorporated. Several members objected to the across-the-board cuts, arguing they would reduce staffing or services in corrections, juvenile corrections, environmental quality, health and welfare, public defender services, crime victims compensation, tax administration, and treatment courts, while supporters said the committee needed a target and would revisit details in enhancement work groups. Most budget motions passed on divided votes and were forwarded with do-pass recommendations. The committee also adopted multiple sections of standard and nonstandard language, including cash transfers, reporting requirements, and agency-specific provisions. In Health and Human Services, members debated language requiring reporting on large acquisitions and transfers, and in Economic Development and General Government they adopted language affecting the State Public Defender, the Department of Insurance, and group insurance premiums. The meeting ended while the committee was still working through a disputed general government language item about funding employee health insurance premiums from reserve accounts, with members debating whether the language should reference specific reserve funds or broader reserve funding and whether the proposal was properly within JFAC’s scope.

Transcript Highlights:

• But if you process the plant, there are going to be some impacts.
• So alkaloids are just natural products that may have some sort of active impact within the body.
• Locally, we have seen negative impacts from kratom use within the city.
• It requires the inflation adjustment to the maximum loan amount. This makes several changes.
• However, that limit should be adjusted as inflation and salaries and prices go up.

Bills: HB2291 , HB2629 , HB2439 , HB1078 , HB1701 , HB2207 , HB2501 , HB2361 , HB1932

Committee: House Consumer Protection & Business

Keywords: kratom, consumer protection, regulation, health safety, substance control, infrastructure, protection, safety, security, state regulations, public health, tobacco regulation, smoking cessation, vapor products, health policy, youth prevention, pet insurance, insurance regulation, animal welfare, claims processes

Transcript Highlights:

• Adjusted for inflation, that $250,000 is equivalent to about $350,000.
• And ensures it keeps pace with inflation by tying it to the CPI.
• And to clarify also, even for goods as well as services, inflation is significantly impacting the cost
• So by not increasing that cap in today's... ...significantly impacting the cost of goods.
• These investments include the Inflation Reduction Act, and for sure.

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• grant would have, for inflation, medical inflation, $10,000, it would take $78,000 today to make that
• ,<00:07:00.160><c> medical</c><00:07:00.479><c> inflation,</c><00:07:01.520><c> $10,000,</c> inflation
• , medical inflation, $10,000, inflation, medical inflation, $10,000, it<00:07:03.120><c> would</c><00
• But then couple that with the inflation.
• </c><00:10:45.200><c> and</c> have not kept up with the inflation and have not kept up with the inflation

Summary: The Kentucky Board of EMS presented an additional budget request focused on grant funding for local EMS agencies, not agency operations. Officials said the board has 13 full-time staff after losing employees in the 2022 transition back to state government, and that the request would be a 100% pass-through to providers. They initially described two requests totaling $12.91 million: $10.8 million for the EMS block grant and $2.1 million for workforce education tied to House Bill 484, but later said they would withdraw the $2.1 million request because rural health transformation funding appears likely to cover those education needs. Most of the testimony explained why the EMS block grant should be increased. The board said the grant began in 1980 at about $1.2 million and has remained largely unchanged while EMS costs have risen sharply. They cited higher prices for ambulances, stretchers, and cardiac monitors, along with increased labor and reimbursement pressures. Board members emphasized that modern EMS now provides much more advanced care in the field, especially in rural areas, and argued that equipment such as 12-lead cardiac monitors can significantly improve patient outcomes. They said the current grant provides about $10,000 per county, while the request would raise funding to about $100,000 per county and increase the per-capita amount from roughly 26 cents to $2.60. Members also discussed whether the block grant statute should be reformed to target need more directly. Board officials said they had considered making the grant more competitive, but decided against it for now because many counties rely on the annual funding and shifting money away from some areas would create hardship. In response to questions, they said Kentucky has about 160 class one EMS agencies providing 911 response across 120 counties, and that grant awards in recent years reached 91 counties, then 108, then 110 counties. They also highlighted the cost and safety benefits of power loading systems for stretchers, saying they can reduce back injuries and help retain EMS workers, but are often unaffordable for smaller departments. No votes were taken on the budget request during the hearing. After the testimony and questions, the committee approved the minutes from the prior meeting by motion and second, with no opposition, and then adjourned.

Transcript Highlights:

• Many of these are funded through the Infrastructure Investment in Jobs Act and the Inflation Reduction
• So these are all under attack, all via the Inflation Reduction Act.
• to the IRA that could indirectly impact the adoption of EVs in Massachusetts.
• Impact the adoption of EVs in Massachusetts.
• is some indication that they will disproportionately impact more affordable vehicles.

Committee: Senate Senate Committee on Climate Change and Global Warming

Summary: The committee held a hearing on the impact of the Trump administration’s federal climate policy changes on Massachusetts, with a focus on threatened grants, regulatory rollbacks, and state options to continue climate work. Chair Creem and other senators emphasized that Massachusetts still has a 2050 net-zero mandate and needs contingency plans for clean energy, transportation electrification, offshore wind, resilience, and financing if federal support is reduced or withdrawn. Executive branch witnesses said Massachusetts has already experienced disruptions to more than $1 billion in climate-related federal funds, though many suspended grants were restored after litigation by the Attorney General’s office. EEA reported continued uncertainty around a $389 million Grid Innovation Program award and a FEMA dam-safety reimbursement, while MassDOT said its NEVI fast-charging program remains on track with about $50 million obligated, but a $14.4 million competitive charging grant is on hold and future unobligated NEVI funds remain uncertain. Senators also discussed EV rebates, charging infrastructure, the role of the Community Climate Bank, and whether the state can expand independent financing and support for municipalities, higher education, and nonprofits. The Attorney General’s office described successful multi-state litigation that won a temporary restraining order and preliminary injunction against the federal funding freeze, restoring access to many EPA, DOE, USDA, and Interior funds, while noting continued enforcement actions over FEMA manual reviews and other barriers. The office said it is also preparing to defend the endangerment finding, California vehicle-emissions waivers, offshore wind permits, and other federal climate protections. Outside advocates warned that federal tax-credit rollbacks, tariffs, and possible repeal of IRA and infrastructure funding could slow EV adoption and raise costs, while offshore wind testimony said federal permitting pauses and legal challenges are delaying projects and could leave Massachusetts far short of its 2030 offshore wind goals. Nonprofit witnesses also described canceled or delayed grants for wetland restoration and urban heat mitigation, and urged the Legislature to increase state funding, including for the environmental bond bill and municipal vulnerability preparedness work.

Transcript Highlights:

• CPI, which is a measure of inflation, was about 3%.
• And so something we've all been watching is inflation.
• Our forecast for inflation. This chart shows inflation for '25, '26, and '27.
• And it impacts the overall rate of return on taxes, etc.
• Also, the impact of HR1 or the one big beautiful bill that was impacting some of the ESA programs, economic

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Transcript Highlights:

• And my concern is actually how it relates to inflation.
• And if you have a situation where inflation is increasing and you make money too easy, inflation can
• And we obviously don't want to see high inflation because of the impact it has on New Mexicans, especially
• So ideally, inflation Is at 2. That's the ideal inflation.
• Inflation, moving it up and down, trying to maintain that.

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Transcript Highlights:

• Um, but it would cap property tax growth at the rate of inflation.
• Um, but it would cap property tax growth at the rate of inflation.
• Um, but it would cap property tax growth at the rate of inflation.
• It would allow a rate of inflation.
• It impacts their quality of life because they have less money to spend, and that in turn impacts the

Transcript Highlights:

• That's inflation.
• We've seen what runaway inflation is doing to our country these days.
• and protect their savings from confiscation through inflation.
• The Goldback is meant to be an inflation-proof version of cash.
• My bill isn't going to impact them.

Summary: The committee met to hear five banking and insurance-related bills. HB 1549, an Office of Financial Regulation agency bill to help more efficiently regulate financial institutions, was amended to match Senate companion language and then passed unanimously. HB 1231 would extend physician payment and prior-authorization protections similar to a prior dental law, including limits on virtual credit card payments as the sole payment method; physicians and medical groups supported it as a way to reduce fees and retroactive denials, while insurers were not heard in opposition, and the bill passed unanimously. The committee then heard HB 999, which would make gold and silver legal tender and allow transactions in bullion through electronic debit mechanisms. The sponsor and several proponents framed it as an inflation hedge and economic freedom measure, while questions focused on definitions, transaction costs, and vendor participation. The bill passed on a mostly party-line vote, with one member voting no. The committee also approved HM 4363, a memorial urging Congress to establish a sovereign wealth fund; the sponsor described it as a way to steward national wealth, and the memorial passed with one dissenting vote. Finally, the committee took up HB 1551, which would create a prevailing-party attorney fee framework in insurance contract disputes. The sponsor argued it would restore balance, deter meritless litigation, and help consumers with valid claims recover fees, while insurers, business groups, and defense attorneys warned it would revive one-way fee shifting, increase litigation, and raise premiums. Consumer advocates and some members supported it as necessary to give policyholders meaningful recourse. After debate, the bill passed favorably, with one member voting no.

Transcript Highlights:

• On the infusion of new dollars, we must deploy every dollar to ensure maximum impact.
• is no pressure relief for the state of Texas when we have inflation.
• That's a good transition to inflation. That's a good transition to inflation, and I agree with you.
• Since 2019, I think inflation has gone up maybe about 27%.
• Her impact has been transformative.

Bills: HB2 , HB2

Committees: Senate Education , Senate Education K-16

Transcript Highlights:

• And I'll just note that these are not the only measures of inflation.
• You'll see the impact of revenue legislation called out separately.
• But the health care inflation, or projected health care inflation, is not included in future outlook
• But the health care inflation or projected health care inflation is not included. inflation or projected
• health care inflation is not included in future outlook calculations or it is.

Committee: Joint Joint Legislative-Executive Committee on Budget Transparency and Fiscal Sustainability

Summary: The committee held its first meeting, with co-chairs and members introducing themselves and staff outlining the committee’s statutory charge under the 2026 supplemental operating budget. Staff explained that the committee is tasked with studying budget transparency and fiscal sustainability in two phases: first, revenue growth, spending assumptions, statutory cost drivers, and carryforward/maintenance levels; and later, staffing, overhead, performance management, and public reporting tools. The committee also discussed its goals, with members emphasizing a shared factual understanding of Washington’s fiscal situation, the causes of projected structural deficits, and possible paths to a more sustainable operating budget. Staff then gave a detailed operating budget basics presentation. They reviewed the size and composition of the operating budget, explaining that most spending is concentrated in grants and client services, salaries and benefits, and goods and services, with K-12 education, DSHS, the Health Care Authority, DCYF, corrections, and higher education making up most NGFO spending. They also walked through the distinction between constitutional, federal, statutory, and discretionary spending; the role of caseload and per-capita forecasts; how maintenance level and policy level budgets are built; and how the four-year outlook works, including revenue forecasts, reversions, budget stabilization account reserves, and the official outlook adoption process. Members asked several questions about what is or is not included in the outlook, especially future collective bargaining agreements, health care inflation, court-ordered liabilities, and whether the budget could better separate mandatory from discretionary spending over time. Staff said some of those questions would require follow-up and noted the existence of an outlook accuracy report. The committee then heard from Josh Goodman of the Pew Charitable Trusts, who introduced Pew’s state fiscal work and its role as the nonprofit partner supporting the committee. He said Pew would help analyze long-term fiscal sustainability, reserve policies, recession preparedness, and practices from other states, and would draw on its 50-state data and subject-matter experts. No votes were taken and no formal actions were reported at this meeting.

Transcript Highlights:

• But if you process the plant, there are going to be some impacts.
• So alkaloids are just natural products that may have some sort of active impact within the body.
• Locally, we have seen negative impacts from kratom use within the city.
• It requires the inflation adjustment to the maximum loan amount. This makes several changes.
• However, that limit should be adjusted as inflation and salaries and prices go up.

Summary: The Consumer Protection and Business Committee held a public hearing on House Bill 2291, the Kratom Consumer Protection Act, and then moved into executive session on several bills. Staff explained that HB 2291 would license kratom retailers and processors, set age 21 purchase limits, require labeling, child-resistant packaging, independent testing, an LCB-approved product directory, and an 11% excise tax, while banning certain synthetic or adulterated kratom products and restricting online/mail sales and public consumption. The prime sponsor said the bill was intended to regulate natural kratom while banning the synthetic or chemically altered forms, and several witnesses supported stronger youth protections and product standards. Others opposed the bill’s licensing fee, statewide preemption of local bans, or the regulatory approach, while some testified that natural kratom helps with pain or recovery. The hearing on HB 2291 was then closed without action. In executive session, the committee took action on multiple bills. HB 2439, dealing with cigarette, vapor product, and tobacco product policy, was amended and reported out with a do pass recommendation; the adopted amendments limited Consumer Protection Act enforcement to the Attorney General, adjusted coupon language, and restored state preemption over local retail regulation. HB 1078 on pet insurance, HB 1701 on shared liquor-license premises, HB 2207 on bonded beer warehousing, and HB 2501 on real estate oil-tank disclosure were all reported out with do pass recommendations, with HB 1701’s substitute removing a Public Records Act exemption and HB 2207’s substitute aligning beer warehousing more closely with spirits warehouse rules. HB 2361, which raises the maximum small loan amount, was amended to make inflation adjustments biennial and to change publication requirements, then passed out of committee. The committee also approved HB 1932, which would authorize cannabis consumption events in regulated environments. The substitute bill would create a cannabis consumption event organizer license, allow limited adult-use events subject to local approval, and establish permit and budtender training requirements; members discussed the bill as a way to provide lawful consumption spaces while others objected to expanding cannabis access. In the final votes, HB 2439 passed 12-3, HB 1078 passed unanimously, HB 1701 passed 14-1, HB 2207 passed 14-1, HB 2501 passed unanimously, HB 2361 passed 13-2, and HB 1932 passed 11-4, all with do pass recommendations.