Transcript Highlights:

• Uh, we focus on kind of the increase in salaries. Uh, we focus on kind of the increase in salaries.
• </c> um, salary increases. um, salary increases.
• </c> individual salary increases. individual salary increases.
• salary increases mean Individual salary increases mean teachers<00:53:06.200><c> are</c><00:53:06.480
• And most of our last annual salary.

Summary: The meeting began with roll call, confirmation of a quorum, and approval of the prior minutes. The main presentation was from KPPA officials Ryan Barrow and Erin Saratt on the annual actuarial valuations for the retirement and insurance systems. They said the systems’ funding status improved overall, with three of five insurance funds fully funded, CERS hazardous dropping from over 100% funded to 90.9% because of premium changes, and KRS receiving $650 million in supplemental funding over the biennium. They also reported strong investment returns above assumed rates, higher payroll and membership counts, and resulting actuarial losses tied to higher salaries and premiums, especially on the insurance side. Members asked several questions about what drove the actuarial losses and whether legislation affected them. KPPA said the CERS insurance loss was driven by premium increases and Senate Bill 10, while the pension-side losses were largely due to higher payroll and benefits for Tier 1 and Tier 2 members. They explained that new Tier 3 employees are designed to add no additional unfunded liability, and that the state administers the systems but does not directly control all hiring. Questions also focused on retiree health premiums, which KPPA said rose about 15% for non-Medicare retirees and 38% for Medicare retirees, with the increase attributed to utilization, prescription costs, and the Inflation Reduction Act. The committee then heard from TRS Deputy Executive Secretary and General Counsel Beau Barnes on the 2025 TRS actuarial valuation. He reported that the Retirement Annuity Trust and Health Insurance Trust both received full funding, the retirement trust’s funded ratio improved to 61%, TRS 4 remains well funded with no liability, and the health insurance trust improved to 89.1%. Barnes said TRS is on track to fully fund legacy liabilities within the amortization period, with 2044 as the point when the system reflects 100% funding and 2046 as the last year needing additional dollars for the legacy liability. He also explained that lower assumed investment returns and updated mortality assumptions increased liabilities, but that TRS uses direct rate smoothing for budgeting purposes. At the end of the meeting, the chair circulated a proposed set of “do’s and don’ts of pensions,” emphasizing that future legislation should not create unfunded liabilities. Barnes also noted he would later discuss several legislative proposals for the 2026 session, but the transcript provided ends before that discussion or any votes on those proposals.

Transcript Highlights:

• Salaries account for 40.9% of that total.
• So it gets a lot of attention, especially when we post salaries.
• So it gets a lot of attention, especially when we post salaries.
• I have a question in regard to the salaries.
• It is not for operations or for salaries. Okay.

Committee: House Appropriations

Transcript Highlights:

• equalization, and then LEARNS minimum teacher salaries.
• First, in 2021, is teacher salary equalization funding.
• In addition to its restricted use for teacher salaries and benefits, teacher salary equalization funds
• must be transferred to and spent from the teacher salary fund.
• However, the districts that report or have been identified with the target salary, or an annual salary

Transcript Highlights:

• </c><00:48:24.920><c> The</c> salary for pension purposes. The salary for pension purposes.
• So, it is not salary employer.
• Our current the salary implications.
• We are that to be eligible salary.
• </c> leave, it would not be eligible salary. leave, it would not be eligible salary.

Transcript Highlights:

• This bill was, of course, the salary commission for county officials.
• These are just the base salaries for that position. All right.
• base, or not that salary base, but their current salary, which in theory will be more than the salary
• schedules, the salary schedule bill.
• Salary and medical benefits and pension.

Committee: House Local Government, Elections and Pensions

Summary: The Committee on Local Government met in executive session and first adopted a substitute for Senate Substitute for Senate Bill 975, which replaced Senator Black’s version with Representative Farnan’s bill. Members discussed that the controversial community-agreement language had been removed and that related community paramedic language had been moved to another bill. The committee then voted 16-0 to do pass the substituted bill. The committee next considered House Bill 3496, dealing with county officials’ salary schedules and county classification issues. Representative Reedy explained the substitute added election authorities language, incorporated another bill on sheriffs and prosecuting attorneys, and changed the title and substance to address county valuation rules for certain fourth-class counties. Members discussed the impact on county classifications and the inclusion of abated and tax-exempt property in valuation calculations. The substitute was adopted, and the committee voted 15-1 to do pass the bill. In public hearing, Representative Sharp presented House Bill 3028 as a Lewis County fix to allow more at-large members on a county board instead of requiring one from each township; a retired Lewis County commissioner testified in support, and no opposition appeared. Representative Thompson presented House Bill 2431 to let Lexington ask voters for a public safety sales tax after a major gas explosion; supporters said it would fund police, fire, and ambulance needs without reducing current budgets, while an opponent argued against new taxes and special laws. Representative Violet presented House Bill 2732 to raise the voter-approved cap on water service line repair fees from $12 to $24 annually; St. Peters officials said costs have risen and the program helps residents avoid large repair bills, while an opponent said existing programs are solvent and opposed the increase. No votes were taken on the public hearing bills, and the committee adjourned after the hearings.

Transcript Highlights:

• This increased immensely from the $20,000 a year that was the starting salary five years ago.
• floor of $55,000 for ESPs and increasing the minimum salary for teachers to $70,000.
• It simply isn't possible to survive here in Massachusetts on an educator salary.
• For myself, $27,000 is not a livable salary.
• For myself, $27,000 is not a livable salary.

Committee: Joint Joint Committee on Education

Summary: The Joint Committee on Education held a public hearing on a large slate of bills, with most testimony focused on two main topics: improving access to augmentative and alternative communication (AAC) for students with disabilities, and raising educator pay statewide. On the AAC bills (House 514/Senate 418), parents, advocates, and attorneys described how AAC devices and communication books help nonverbal or minimally verbal children communicate, participate in class, and reduce frustration and behavioral issues. Testimony emphasized that while districts are generally required to provide devices, many teachers and school staff lack training to use them effectively; the bill would direct DESE to update licensure and training requirements so newly licensed teachers are prepared to support AAC users. Committee members asked about current teacher-prep practices, implementation, and whether DESE could act without legislation, and witnesses said the proposal was intended as a long-term solution and had previously received some support and compromise language. The committee also heard extensive testimony on House 733/Senate 370, which would set a statewide minimum salary of $70,000 for teachers and $55,000 for education support professionals (ESPs/paras), with inflation adjustments and a phase-in structure that would shift costs over time from the state to municipalities. Supporters, including the bill sponsor, MTA leaders, and school employees from several districts, argued that current pay is not a living wage, contributes to staffing shortages and turnover, and forces many educators to work multiple jobs or rely on public assistance. They said the bill would help recruit and retain staff and better reflect the importance of the work. Committee members raised questions about how the state would fund the mandate, how it would interact with Chapter 70 school aid and local budgets, whether other states have similar mechanisms, and whether the proposal could create disincentives for districts already paying above the floor. Witnesses pointed to the Student Opportunity Act, the Fair Share Amendment, and the need for a broader school funding formula review as possible parts of the solution. The committee also briefly heard and discussed Senate Bill 435/House Bill 736, which would require de-escalation training for school bus operators, with the training paid for by employers. The sponsor and a parent advocate said the bill was prompted by a school bus incident involving a child with cerebral palsy and epilepsy and would improve safety and reduce reliance on law enforcement. Members asked whether the bill should also cover bus monitors and other transportation staff, and whether private contractors and public operators currently provide similar training. At the end of the hearing, the chairs closed testimony on the full list of bills and adjourned the hearing without taking any votes.

Transcript Highlights:

• You can see the HHS salary information at the bottom is where I'm going to go.
• But this is salary as of January, what was paid, so it would be PeopleSoft as of February 10th.
• And so the executive budget request salary, the $626...
• the 626 executive budget request salary the 626.
• 1st with the new salary company. as of January 1st with the new salary compensation package that this

Bills: SB2399

Committee: Senate Appropriations - Human Resources Division

Summary: The Senate Appropriations HR Division met to work through amendments and budget items in House Bill 2012/HB 1004, focusing first on long-term care, disability services, and behavioral health. Members discussed competing approaches to a four-plex for medically complex individuals, a value-based care payment withhold for nursing facilities, accreditation requirements for providers, a study of developmental disability services, and funding for Family Voices and Ann Carlson-related services. Several amendments were accepted or set aside after discussion, including a study amendment for disability services and a Family Voices grant amendment that was adjusted to remove “one-time” language so it could continue as an ongoing grant. The committee also agreed to keep or defer some items for conference committee, including the youth crisis stabilization pilot and other long-term care proposals. A major discussion centered on the state hospital project. Members debated whether the $330 million project should remain in the DHS budget or be moved to the OMB budget for construction management. After discussion of costs, alternates, and the role of a steering committee and BND loan language, the committee agreed to remove the state hospital funding and related loan language from the DHS budget while leaving the steering committee language in place. The committee also considered a proposed Altru grant for additional beds and settled on a smaller planning-focused approach, with a $1 million grant and a line of credit concept to be refined later. The committee then turned to behavioral health items, including QRTP funding, nursing home behavioral health training, and a youth crisis stabilization pilot. Members generally supported keeping the QRTP funding level, but were divided on the nursing home behavioral health training and the crisis stabilization pilot, with some preferring to leave those issues for conference committee. The division also reviewed the HHS block grant and underfunding structure, with Donna Ackland explaining salary, vacancy, and flexibility calculations; the committee discussed adjusting the underfund and revenue assumptions but did not finalize every number before moving on. Finally, the committee took up House Bill 1577 on wastewater treatment grants. Senator Davison moved to hoghouse the bill into a study-focused version using the proposed amendment language, and the motion passed. The committee then moved HB 1577 as amended with a do pass recommendation; the roll call passed with Senators Cleary, Davison, Dever, and Mathern voting yes, and Senator Magrum not recorded as voting. The meeting adjourned with plans to return later in the day to continue budget work.

Transcript Highlights:

• All of the salaries fall within the pre-approved plan, or... Thank you.
• They make a higher salary. Many of them do.
• So I guess I have concerns because we keep raising salaries, but we're working less.
• Concerns because we keep raising salaries, but we're working less.
• To think about who pays their salaries. Sure. And it's the taxpayers of the state of Arkansas.

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee first reviewed a list of bills already ready for “do pass,” including several House bills (HB 1010, 1018, 1020, 1023, 1041, 1055, 1077) and Senate bills (SB 4, 16, 23, 24, 55, 59). It then took up the JBC Personnel Subcommittee report (B1), where a substitute motion to separate out the governor’s staff-related item for a separate vote was debated at length. Members raised concerns about transparency, a requested appearance by a governor’s staff member, and whether the administration should be compelled to testify. The substitute motion failed on a roll-call division vote, and the committee then adopted the subcommittee report as presented. The committee next questioned Treasurer John Thurston on House Bill 1034 and his office’s budget request, focusing on salary increases for his executive team, the size of raises under the new pay plan, office hours, and whether the increases were justified. Thurston said the request was to fully fund the approved pay plan, later reduced to a 10% increase after discussion with legislative leaders, and explained that salaries were set within the approved plan. Several members criticized the raises as too large or unfair, while others noted the compromise and thanked him for cooperating. The committee then adopted the HB 1034 letter. After that, the committee reviewed Schedule C and several special-language items, including amendments to SB 4, SB 58, HB 1052, and SB 77. It discussed a new item allowing DFA to establish a GAMP program for agricultural extension office improvements, with no funding attached, and adopted it. The committee then passed or adopted a series of measures, including SB 29, SB 51, HB 1034, and the remaining ready bills listed at the start of the meeting. SB 4 was set aside as not ready. The meeting ended with notice that the committee would reconvene in 15 minutes in another room to handle special language.

Transcript Highlights:

• with teacher salaries below the...
• With teacher salaries below the average teacher salary, and then declining enrollment, which is, of course
• the minimum base salary of $50,000.
• So my question has to do with teacher's salary equalization dollars and them out as we normally do.
• So my question has to do with teacher's salary equalization dollars and So my question has to do with

Transcript Highlights:

• This is largely to compete with those local competitive salaries, to bring them up to an hourly salary
• Teacher salary allocation, it's a total $201 million increase.
• Teacher's salary allocation, it's a total $201 million increase.
• And you also mentioned that there is an increase in salary for teachers.
• There is a dedicated line item within the FFP for teacher salaries.

Summary: The Appropriations Committee first took up SB 7010, which would authorize Roth contributions in state and local deferred compensation plans. Senator Mayfield explained that current law only allows pre-tax contributions, and the bill would let the Department of Financial Services and local governments offer post-tax Roth options. The bill had one support appearance card, no debate, and was reported favorably by roll call vote. The committee then received a lengthy presentation from the Governor’s Office of Policy and Budget on the governor’s recommended “Floridians First” budget, totaling $117.4 billion and $53.2 billion in general revenue. The presentation highlighted reserves, debt paydown, tax relief, and proposed reductions and efficiencies, along with major spending areas in education, health care, public safety, corrections, transportation, and economic development. Key proposals included higher K-12 funding, teacher salary increases, funding for Everglades and water quality projects, emergency preparedness, corrections staffing and facility funding, cybersecurity, law enforcement recruitment bonuses, and affordable housing and infrastructure investments. Members asked extensive questions about property tax reserves, litigation funding, emergency response fund balances and spending, the Alligator Alcatraz detention facility and federal reimbursement, the Second Amendment sales tax holiday, animal abuse hotline funding, Hope Florida, corrections staffing, and teacher pay. A major portion of the discussion focused on the Department of Health’s planned changes to the ADAP HIV medication program, with senators and a public witness expressing concern about access to life-saving medications and possible misuse or redirection of funds. The committee did not take further action on the budget presentation, and the meeting ended after additional comments supporting the budget and the corrections funding, with SB 7010 already approved.

Transcript Highlights:

• Um, branch salary schedule adjustments.
• We didn't employee salary increases.
• </c> authorization to adjust the salary authorization to adjust the salary schedule<00:30:09.919><c>
• </c> salaries of the employees. salaries of the employees.
• </c> compression issue on state salaries. compression issue on state salaries.

Summary: The committee met on November 5, 2025, and first approved the minutes after a moment of silence for the UPS airport tragedy. The main presentation was from the Personnel Cabinet on the state health insurance plans and executive branch salary schedule adjustments. Officials said the health plan covers roughly 265,000 active members and up to about 300,000 across all benefit offerings, including school board employees, retirees, and other eligible groups. They described rising claims and expenditures, especially from high-cost claimants and pharmacy spending, and said recent premium and benefit changes were intended to balance costs while preserving recruitment and retention efforts. They also explained that employee premiums had not increased for several years, while employer contributions rose sharply in recent years, and projected a 10% employer increase and 3% employee increase going forward based on actuarial analysis. Committee members asked about deductibles, GLP-1 drug costs, claims validation, and the causes of cost growth; officials said the plan uses multiple payment-integrity vendors and that the increases reflect utilization, drug trends, and high-cost cases rather than a change in coverage. The committee also discussed executive branch salary schedule adjustments. Personnel and budget officials explained that when the legislature approves annual pay increases, the salary schedule is adjusted by the same percentage through executive order so the minimum and midpoint stay aligned with approved compensation levels. They said the 2025 adjustment was a 3% match effective September 16 and that the change was costless because salaries had already been increased. Members raised concerns about salary compression, noting that new hires can sometimes be paid near the level of long-serving employees. Officials said the adjustment helps prevent compression from worsening but does not solve it, and they acknowledged prior RFP efforts to address the issue were unsuccessful because no qualified bidder met the requirements. After the health plan and salary discussions, the committee began a presentation from the Cabinet for Health and Family Services on Kentucky’s senior meal program. Secretary Stack explained that the program is a federal-state-local partnership under the Older Americans Act, with area development districts helping deliver services. He outlined eligibility rules, noting that congregate meals at senior centers are available to people age 60 and older, with a spouse of any age allowed to join, and that home-delivered meals have additional homebound and assistance requirements. Members asked whether there was any means test for congregate meals, and the secretary said there is not; the only threshold is age for the center-based meals, while the home-delivered program has additional criteria.

Transcript Highlights:

• The CEO salary has been out of salary savings, right?
• We have salary requests.
• We have salary adjustments—other salary adjustment requests, yes, in our request.
• We have salary requests.
• We have salary adjustments—other salary adjustment requests, yes, in our request.

Transcript Highlights:

• The mandate for armed security officers has significant... increased personnel costs including salaries
• Judicial salaries have also been an issue that the...
• The committee substitute also increases the base salary of a district judge by 15% which also results
• in higher salaries for elected prosecutors.
• This is why I firmly believe that the judiciary should not receive any type of salary increase until

Bills: SB260 , SB263 , SB293 , SJR18

Committee: Senate Finance

Transcript Highlights:

• </c><00:31:18.399><c> measured</c> of their last contract salary measured of their last contract salary
• </c> 65% of their last contract salary 65% of their last contract salary measured<00:31:30.080><c> on
• Uh we did back in 2002 there was salary.
• And lower salaries for whatever reason.
• </c><00:50:06.000><c> uh</c> just making some really low salaries uh just making some really low salaries

Summary: The meeting began with quorum, approval of the prior minutes, and an announcement that the June meeting had been canceled and replaced by this combined May/June meeting; the next official PPOB meeting was announced for July 21 at 2:30. Staff then gave an overview of the Public Pension Oversight Board’s required actuarial audit process, explaining that House Bill 238 requires a review every five years of the retirement systems’ actuarial assumptions and methods, funded by the systems themselves. The presentation distinguished this audit from a financial or forensic audit, described the three possible audit levels (full replication, limited/spot review, or basic review), and noted that the last audit in 2021 was a level one performed by Milleman Consulting at a cost of about $190,000. Members discussed timing for the next audit cycle, with a request to LRC likely needed in July or August to target the June 30, 2026 valuation, and several members expressed interest in another level one review. Questions also addressed whether prior audits found major issues; staff said the 2021 review was generally clean but recommended more consistency in reporting and assumptions across systems. The committee then welcomed new staff and interns, including Odet Guanzi of KPPPA and Team Kentucky intern Amamira Bowman. Bo Barnes of the Teachers Retirement System presented an overview of the statutory framework for reemployment after retirement under KRS 161.605. He explained that the law is intended to let retirees return to help with staffing needs, do so in an actuarially sound way through required contributions, and keep TRS compliant with federal tax rules for a qualified plan under section 401(a). Barnes described the required breaks in service and earnings limits for retirees returning part-time or full-time, including the three-month or 12-month break depending on the employer, the 6,900-day limit, and the daily wage threshold based on years of service. He also noted a lightly used critical shortage program that allows school districts to hire retirees without a wage cap, while still observing the break-in-service rules. Members asked questions about who decides the scope and level of the actuarial audit, how the audit would treat leave balances and other benefit-related items, and whether the prior level one audit identified substantial problems. Staff said the committee would request the audit, but LRC would handle contracting, and that the audit scope could include items like sick leave and annual leave costs if requested. On the reemployment topic, Barnes emphasized that the rules are designed to avoid pre-arranged retire-and-return arrangements that could jeopardize TRS’s tax-qualified status. No formal votes were taken beyond approving the minutes, and the meeting concluded with the presentations and discussion of these pension oversight issues.

Transcript Highlights:

• It's going toward salaries mainly.
• I heard something in regards to salaries in regards to this.
• I mean, it's for salaries.
• I mean, we're increasing the salary lines, so it would go towards salaries.
• That's all this money would go to is towards salaries.

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee first received a report on the executive protection detail, which was filed without questions. Members were then given a long advance list of House and Senate bills ready for consideration, followed by several amendment requests from agencies. The committee adopted amendments for the Auditor of State to increase special deputy expense allowance, the Administrative Office of the Courts for court interpreters and substitute court reporters, and several other items including local sales tax refunds, county property tax redistribution, and local law enforcement funding. It also held one amendment on House Bill 1034 and moved a Northwest Arkansas Community College cash fund increase tied to tornado-related campus repairs. The committee then considered a series of member amendments and appropriation items, including increases for the Public Defender Commission and deputy prosecuting attorneys to cover higher bar license fees, and a $12 million federal appropriation-only item. A lengthy discussion followed on a proposal from Senator Wallace and Representative Tosh to fund a pilot program for prison cell-phone detection/jamming technology at two correctional facilities. Sponsors and Department of Corrections officials said the system would target illegal contraband phones, would be procured through an RFP, and would be a two-year pilot; members raised questions about legality, cost, scope, data, and whether the department should use existing budget authority. The committee ultimately advanced the item by motion. The committee also took up an amendment from Senator Caldwell for the University of Arkansas Division of Agriculture, seeking a $4 million appropriation increase. Testimony emphasized that the division’s extension offices and research functions are underfunded, that salaries are not competitive, and that the request would help with staffing and flexibility; other members questioned why the division needed more appropriation authority when it already had room under current limits and noted that the request exceeded the higher education board’s recommendation. The amendment was adopted after extended debate. Finally, the committee began acting on governor’s letters, adopting amendments for a $150 million increase to the homestead property tax credit, a $23,000 reallocation for the Insurance Department’s conference costs, $100,000 for property appraisal review work, $1.5 million for career and technical education professional development, $300,000 for DFA regulatory federal spending, $5 million for Inspector General fraud investigations, a consolidation of appraiser/abstractor/home inspector appropriations, deletion of a completed Fort Chaffee readiness center appropriation, and a revised reappropriation for corrections capital projects that would add special language restricting use of the $73.7 million prison-expansion reappropriation. The committee also heard a summary of a supplemental appropriations package involving fund transfers for pregnancy resource centers, senior centers, assistance grants, used tires, and UAMS pregnancy/stroke programs.

Transcript Highlights:

• So it's going toward salaries mainly.
• So it's going toward salaries mainly.
• I mean, it's for salaries.
• I mean, we're increasing the salary lines, so it would go towards salaries.
• That's all this money would go to is towards salaries.

Committee: All JOINT BUDGET COMMITTEE

Transcript Highlights:

• Along with the position changes, they are also requesting to move $3 million in regular salaries and
• There are 92 employees on the list that will have increased salaries if the item is approved.
• Do you know what those positions are that have that type of salary?
• There are 92 employees on the list that will have increased salaries if the item is approved.
• Do you know what those positions are that have that type of salary?

Committee: All ALC-PERSONNEL

Summary: The committee reviewed several personnel and appropriation items, including Item C, which involved a two-for-two position swap with no net increase in authorized positions and was approved after motion. Item D for South Arkansas College added three net positions through a mix of growth and swap pool requests, including food service, public safety, housing support, and compliance-related roles; it was also approved. Item E moved positions and $3 million in salary and match appropriation within Workforce Services to consolidate shared services, with no net change in positions, and was approved. The committee then took up Items F through O as continuation requests for previously approved or reviewed positions and differentials to carry into FY27. These included growth and surrender pool positions at several agencies, various pay differentials such as second-language, on-call, hard-to-fill, certification, and labor market adjustments, as well as continuation of grant-funded classifications tied to ARPA and IIJA grants and other federal grants. After no questions, the committee approved the continuations in a single motion. Under the supplemental agenda, the committee suspended the rules and approved Item A-1, which authorized salary increases above grade maximums for 92 employees due to merit increases. A senator asked about several public safety classifications listed as Med 14, 16, 14, and 15, and staff indicated they were likely crime lab medical examiner positions. The meeting then adjourned.

Transcript Highlights:

• Item C is an increase in all funds to biennialize the statewide salary adjustments begun in the 24 to
• So they did, was it a salary increase last time? It was the 5% salary adjustment that happened.
• and moved it to non-vacant positions in order to raise their salaries.
• to better align those salaries with current.
• And you would need about $6500 to set it up, but the actual salary would be $110,000.

Committee: House Appropriations - S/C on Articles VI, VII, & VIII

Summary: The committee met with a quorum present to hear Article VI Natural Resources agency budget recommendations, beginning with the Railroad Commission. LBB staff summarized the commission’s 2026-27 base recommendation at $458.7 million, down from the prior biennium, with an increased FTE cap. The presentation highlighted reduced federal IIJA funding, volatility in oil and gas regulation account 5155, continued support for IT modernization, and rider changes. The commission’s major exceptional items were then presented, including requests for produced water and injection data reporting, an authorized pit registration system, regulatory filing/permitting upgrades, an underground injection well investigation team, site remediation support, and especially $100 million for orphan well plugging. Members asked about biennium-to-biennium comparisons, salary biennialization, the scale of orphan well risks, federal funding delays, bonding, and whether the state should rely more on industry or general revenue for plugging costs. Commission leadership explained that orphan wells can threaten water and public safety, that plugging costs have risen sharply, and that current funding is insufficient to keep up with emergency wells and the backlog; they also said the agency is moving to cloud-based systems with cybersecurity protections and that the proposed performance measure may need adjustment if funding does not increase. The Railroad Commission testimony was followed by LBB and agency testimony for the Texas Animal Health Commission. LBB described a $42 million recommendation for 2026-27, an increase overall, but with a reduced FTE cap due to turnover and salary reallocation. The recommendation maintained funding for cattle fever tick work, chronic wasting disease, lab testing through an MOU with Texas A&M’s veterinary diagnostic lab, and a new $5 million spay-and-neuter pilot program, while deleting a capital budget rider and adjusting riders tied to entry point inspection stations and clinical trials. Agency leadership then outlined the commission’s mission to protect livestock health and the state’s $22 billion animal industry, and described major disease threats including highly pathogenic avian influenza, cattle fever ticks, New World screwworm, and chronic wasting disease. Their exceptional items focused on recruiting and retaining veterinarians, replacing fleet vehicles, creating an ectoparasite identification lab, adding field staff and IT support, improving records and epidemiology reporting, strengthening central administration, supporting secure food supply planning, expanding chronic wasting disease work, and staffing the new spay-and-neuter program. Members asked about field identification of ticks, the use of disinfectants and PPE, fleet management, the scale of cattle fever tick risk, and chronic wasting disease; the agency explained its current inspection and lab-confirmation process, its reliance on field disinfecting and biosecurity, and the need for more staff and better data systems to keep pace with growing workloads and disease threats.

Transcript Highlights:

• schedule. is up to the minimum salary schedule.
• It's really that delta of what's above the minimum salary schedule for those charters.
• An annuitant's retirement is based upon their highest average salary.
• It used to be a much shorter period of time. used to be three-year average salary.
• Follow-up on Representative Bumgarner's question about minimum salary schedule and total payroll.

Committee: House Pensions, Investments & Financial Services

Transcript Highlights:

• And these would be wages that are paid to salary employees, part-time or temporary employees, student
• For FY 24-25, our fringe benefits for salary employees averaged about 35% of their base pay.
• For FY2425, our fringe benefits for salary employees averaged about 35% of their base pay.
• And then in salaries, we as a system have paid out $605 million in salary increases.
• So I think we've been very judicious in terms of salary increases that we provided.

Summary: The Appropriations Committee on Higher Education met to examine how Florida’s state universities are funded and to begin discussing a possible university funding model. The panel included the State University System chancellor and CFOs from FSU, UF, FAMU, FAU, UNF, and UCF. Members first reviewed major cost drivers, which the universities said are broadly similar across institutions: wages and benefits, equipment and supplies, financial aid, professional services, utilities, IT, and maintenance. Several institutions noted unique pressures from geography, growth, research intensity, and mission, such as UCF’s size and engineering focus, UF’s land-grant and research enterprise, FAMU’s need to recruit top talent while serving a high-Pell student population, and FSU’s large facilities and research obligations. The chancellor also summarized systemwide cost growth since 2012-13, including higher health insurance, retirement, and salary costs, while noting tuition had been held flat. The committee then discussed other revenue sources, including auxiliaries, restricted funds, capital projects, and component units such as foundations and health systems. University leaders explained that many of these funds are restricted to specific purposes, and some, like UF Health, account for a large share of operating expenses. Members also discussed the current performance-based funding process. University representatives generally praised it for transparency, accountability, and its focus on student success, but said the heavy use of one-time funds, nonrecurring appropriations, and unfunded mandates makes long-term planning difficult. FSU and others argued that rising employee costs, waivers, and facilities expenses are not fully covered, while FAMU said performance funding has improved outcomes but can disadvantage institutions serving more low-income students. In response to questions about improvements, the universities suggested more recurring and predictable funding, better coverage of mandated costs, more flexibility in fees, and continued investment in research and strategic priorities. The chancellor said the Board of Governors is considering a version 3.0 of performance funding that would benchmark institutions against peers and Carnegie classifications. The committee also explored whether universities should have more flexibility to set out-of-state tuition and professional school tuition. Most university leaders favored giving boards of trustees more authority, while the chancellor cautioned that increasing out-of-state enrollment or tuition too much could affect legislative support. No votes were taken; the meeting ended with the chair thanking the panel and adjourning the committee.