Transcript Highlights:

• </c><01:11:26.159><c> or</c> they have the necessary zoning or they have the necessary zoning or subdivision
• </c><01:15:10.960><c> or</c> potentially also had no zoning or potentially also had no zoning or subdivision
• We receive a bonding recommendation each year from the Capital Debt Affordability Advisory Committee.
• The bonding recommendation for this two-year cycle was lower than in previous cycles, not because of
• And H952, an act relating to capital construction and state bonding budget adjustments.

Transcript Highlights:

• The bill will ease pressure on general obligation bond capacity for major academic projects like the
• And when she talked about the time frame on the geo bonds, so a geo bond is presented in the odd years
• So the GEO bond projects, from the time they're first proposed, is about a five-year time period.
• During the summer process for hearing general obligation bond requests and then as well as other state
• Institution Bond Act, property tax levies, federal or tribal support.

Bills: SB234 , SB210 , SB243 , SB244 , SM16 , HB8

Committee: Senate House Education

Summary: The Senate Education Committee began by announcing that SB 210 would be rolled over to Friday and would not be heard. The committee then returned to SB 234, which would provide foster child school transportation funding statewide rather than only for Albuquerque Public Schools. Members adopted an amendment striking the APS-only language and making the bill statewide after testimony from the sponsor, PED, and others that foster youth transportation is a growing issue and should have its own funding stream. The committee discussed how the money might be distributed and whether the $1.2 million appropriation would be sufficient, then voted do pass on SB 234 as amended. The committee next heard HB 8, which creates a Higher Education Major Projects Fund for large capital projects that are difficult to fund through existing capital outlay processes. Testimony from the sponsor, LFC, HED, and university representatives explained that the bill would support projects such as the UNM School of Medicine, an NMSU multidisciplinary building, student housing, student life projects, and certain Division I athletic facilities, while requiring design readiness, institutional matches, and legislative oversight. Several senators raised concerns about the clarity of the prioritization process, the Division I-only athletics language, the recurring nature of future funding, and the relationship to other capital funding streams, but the committee ultimately voted do pass on HB 8. The committee then considered SB 243 and SB 244, nearly identical bills for UNM and NMSU that would each appropriate $5 million for student health, student support, nutrition, travel, scholarships, and other athletic department needs. Athletic directors testified that conference realignment, higher travel costs, nutrition demands, and new revenue-sharing/NIL obligations have increased expenses, and sponsors said the bills were intended as one-time appropriations. Some senators questioned whether the requests should be recurring or funded through university revenue rather than the state, but both bills received do pass recommendations. Finally, the committee heard SM 16, as amended, which asks HED to convene a task force to study parenting students in higher education and recommend ways to collect data and improve support. Supporters said better data is needed to understand barriers such as child care and transportation, and the memorial passed with a do pass recommendation. The committee then adjourned until Friday morning.

Bills: HB517 , HB98 , HB235 , HB236 , HB237 , HB238 , HB239 , HB240 , HB241 , HB242 , HB565 , HB517 , HB98 , HB235 , HB236 , HB237 , HB238 , HB239 , HB240 , HB241 , HB242 , HB565 , SB380

Committee: Senate Finance and Taxation Education

Keywords: underground damage prevention, one-call notification system, utility locating, excavation safety, dig safe, call before you dig, utility lines, underground utilities, pipeline safety, gas pipeline, electric utility, telecommunications, water utility, wastewater, cable television, locate request, premark, tolerance zone, positive response, contract locator

Transcript Highlights:

• as we just heard about flood control, this bill would promote the cannibalization of flood control zone
• We're forcing families to spend their babies' first months fighting claims adjusters instead of bonding

Bills: HB2104 , HB1903 , HB1909 , HB1982 , HB2034 , HB2105 , HB2210 , HB2215 , HB2271 , HB2345 , HB2355 , HB2384 , HB2389 , HB2397 , HB2418 , HB2429 , HB2442 , HB2479 , HB2481 , HB2681 , HB2688 , HB2714

Committee: House Appropriations

Keywords: aviation, wildland fires, funding, disaster relief, emergency response, energy assistance, low-income, utility costs, state program, energy affordability, court unification, task force, Washington courts, judicial administration, court reform, access to justice, local court rules, uniformity, centralization, rural courts

Bills: HB34 , HM7 , HM8 , HM17 , HM3 , HM11 , HM14 , HM15 , HM21 , HM25 , HM34 , HB95 , HB111 , SB1 , HJR1 , HM4 , HM22

Keywords: HB34, school nurse, school nurses, nurse licensure, licensure, charter school, charter schools, school district, public education, Department of Health, Public Education Department, registered nurse, RN, mentorship, evaluation, competency, teacher salary parity, minimum salary, level one license, level two license

Transcript Highlights:

• Craton Enterprise Physician of the Year, multiple Teacher of the Year awards, and Phoenix Magazine Top
• special place infrastructure; HB 4032, alternative ways and means and appropriations; HB 4033, school bond
• 2993, DPS legal representation; HB 4007, municipal tax increment financing; 8CM 2013 Goldback Trust Bonds
• HB 4007, municipal tax increment financing; HCR 2013, Goldback Trust Bonds, urging authorization.

Transcript Highlights:

• Martin Fisher, staff attorney with the Legislative Counsel Service, and with me I have Aaron Bond and
• The updated spaces in 2019 We passed a local bond in which we then had renewed in 2023, which has paid
• So again, that was secured through a statewide geo bond and also local funding.
• A detailed map of the area we're going to operate in so that construction zones are going to change our
• Just so you know, we've established a list of all the properties that are affected by this flood zone

Transcript Highlights:

• One thing to realize is that a lot of these sites have contamination issues, and zoning and permitting
• , necessary amounts, would greatly broaden and expand the issuance of bonds.
• , necessary amounts, would greatly broaden and expand the issuance of bonds.
• Section 75, a section which limits bond issuance to only reasonable, necessary amounts, would greatly
• broaden and expand the issuance of bonds.

Committee: Joint Joint Committee on Telecommunications, Utilities and Energy

Summary: The committee heard testimony on a range of energy, utility, broadband, and municipal infrastructure bills. Representative Powell supported H 3466, which would create a task force to study public ownership of utilities and alternatives to investor-owned electric and gas systems. Representative Therber supported H 3574, which would use RGGI funds to reimburse cities and towns affected by power plant decommissioning, citing lost jobs, tax revenue, and service cuts in communities such as Somerset, Plymouth, Salem, and Everett. Several witnesses from municipal light plants and related organizations testified in support of mutual aid bills, including H 3486/S 2252 and H 3330/S 2277, saying the measures would clarify protections and liability coverage for MLP workers assisting in emergencies and non-emergency work. Jim Leiden of EMWIC opposed H 3514/S 2295, saying the proposed board and governance changes would reduce local control, add burdens, and weaken confidentiality protections. A committee member asked whether the mutual aid bills had been reviewed for municipal impacts, and the witnesses said they had done due diligence. The committee also heard extensive testimony on H 3551/S 2306, the smart meter opt-out bills. Supporters argued that smart meters emit harmful wireless radiation, that some residents have developed health problems or electromagnetic sensitivity, and that opt-outs should be available without fees or penalties; several witnesses urged notification, consent, and non-transmitting analog meter options. The committee also heard testimony from municipal officials and the Massachusetts Municipal Association in support of H 3462/S 2250, which would strengthen municipal authority to enforce timely removal of double utility poles, citing safety, accessibility, and construction-delay concerns. Derek Leffert of Gateway Fiber opposed H 3450, saying it would improperly shift broadband deployment costs to competitors. At the end of testimony, the chair closed the hearing by motion and vote, with members voting aye and no opposition recorded.

Transcript Highlights:

• That's the gap we also know we have in our development and zoning codes.
• and our code flexibility is inflexible, and that we mire them down in absolute—I mean, they got a bond
• for a project that could be $50 million, and it could be a year that they bonded that and, you know,
• for a project that could be, them down in absolute, I mean, they got a bond for a project that could
• be $50 million and it could be a year that they bonded that and, you know, the payback and all that

Committee: House Local Government

Transcript Highlights:

• and overrides to address our financial priorities, and shortly thereafter the council adopted new zoning
• This zoning worked.
• Over the course of the most recent decade, this new zoning yielded the type of growth that I think many
• and overrides to address our financial priorities and shortly thereafter the council adopted new zoning
• our AAA bond rating, which gives us a better interest rate when we're borrowing funds.

Bills: H3012 , H4008 , H4435 , H4444 , H4526 , H4547 , H4574 , H4575 , H4576 , H4577 , H4585 , H4605 , H4687 , H4703 , H4722 , H4754 , H4755

Committee: Joint Joint Committee on Revenue

Keywords: fines, property valuation, commercial property, real estate, tax penalties, property taxes, local option tax, marijuana sales, Salem, revenue generation, taxation, recreation, local government, commercial activities, Charlemont, property exemption, disabled persons, Swampscott, senior exemption, property tax

Transcript Highlights:

• If I could briefly editorialize, this is kind of the nut of it: if it's meeting the underlying zoning
• Washington has 10 federally defined climate zones, over three dozen fire weather zones, and over 300
• Washington has 10 federally defined climate zones, over three dozen fire weather zones, and over 300
• In 2023,... ...weather zones and over 300 fire protection districts providing first response.
• Thank you. ...weather zones and over 300 fire protection districts providing first response.

Bills: SB5633 , SB6279 , SB6291 , SB6274 , SB6309 , SB5903 , SB6016 , SB5820 , SB6132 , SB6189

Committee: Senate Local Government

Keywords: land subdivision, zoning, property development, local government authority, real estate, infrastructure, wildfire, wildland urban interface, WUI, building code, fire-resistant construction, defensible space, hazard map, risk map, state building code council, department of natural resources, fire marshal, regional fire defense board, roofing standards, exterior walls

Transcript Highlights:

• The governor's FY 26/27 budget approved a total of $81.4 million in general obligation bond funds and
• 13:48.760><c> in</c><00:13:48.920><c> general</c><00:13:49.240><c> obligation</c><00:13:49.760><c> bond
• </c> in FY 27 in general obligation bond in FY 27 in general obligation bond funds<00:13:50.959><c> which
• </c><00:14:06.320><c> funds</c> million in general obligation bond funds million in general obligation
• bond funds and<00:14:07.199><c> 80.5</c><00:14:08.040><c> millions</c><00:14:08.440><c> in</c><00:14

Summary: The Committee on Finance held informational briefings first with the Department of Defense on its FY 2026 budget request, then with the Hawaii School Facilities Authority. Major General Steve Logan outlined the Department of Defense request for $40.5 million in state funds, which he said would leverage about $74 million in federal matching funds and support 411 open projects that could attract up to $2.3 billion in additional federal grant money. He said the budget focuses on sustainment, safety, and reorganization in light of lessons from the Maui wildfires. Key requests included $1.3 million to sustain IT systems, $2.7 million for 32 HEMA emergency management positions, three new Hawaii Army National Guard positions plus four upgrades, and $1.9 million for the Youth Challenge Program to cover state-mandated fringe costs and staffing needs. He also reviewed capital improvement projects, including Youth Challenge facility upgrades, siren modernization, ADA improvements, building retrofits for disaster resilience, Army facility upgrades, a third state veterans home on Maui, HEMA EOC improvements, and a maintenance/fuel building at Diamond Head. Members asked about the siren modernization timeline, and HEMA said roughly 26 to 31 sirens would be modernized this year, with 15 on Maui, eight on Oahu, and eight on the Big Island. Questions also focused on Youth Challenge and Job Challenge enrollment and vacancies, with the department saying the Hilo Job Challenge Academy is growing and that combining Youth Challenge recruiting statewide into one Kilauea program has helped enrollment. Logan also answered questions about the New Year’s Eve medical transport mission, explaining the Hawaii Air National Guard’s relationship with active-duty Air Force assets and saying the flight cost is about $20,000 per flight hour, though the final bill had not yet been determined. On the Maui veterans home, staff said the University of Hawaii site was no longer viable after faculty senate opposition, so the department is now focused on a 10-acre Puna District site; the project remains tied to a certified $35 million state match and August 2025 and August 2026 federal suspense dates. Logan said the veterans home remains one of the department’s highest priorities, but it could not be moved higher in the submitted CIP ranking. The department also discussed a Governor’s add-on for a fire marshal/Office of Recovery and Resiliency proposal. Logan said the fire marshal position was reestablished last session but has not yet been filled, and that if the function is transferred to the Department of Defense, the department wants funding ready to move quickly. Staff later said the request would include about $1.1 million for seven positions and about $2.2 million for operating costs, though details were still preliminary. The committee then reconvened for the School Facilities Authority briefing, where Executive Director Ricky Fujitani described the agency as a startup created in 2020 to improve school and workforce housing development through standardized designs, prefabrication, best-value procurement, and public-private partnerships. He said Hawaii’s single school district still functions like 15 different districts because of its 264 schools across 15 complex areas, and that the authority’s goal is to create more efficient, maintainable, and cost-effective facilities.

Transcript Highlights:

• She adds that there are nine official fan activation areas, or fan zones, and that they have partnered
• And then, of course, with the activations that I mentioned across the state, with the official fan zones
• And while it may not be that international fans are traveling to each of those fan zones, we are expecting
• on-demand services, helping to connect people from transit centers or their downtowns to their fan zones
• As you just mentioned, we have fan sites, fan zones.

Summary: The committee began with a work session on transportation planning for the 2026 FIFA World Cup in Western Washington. April Putney of the Seattle FIFA World Cup 26 Local Organizing Committee described the event as a statewide, 39-day tournament with six Seattle group-stage matches, additional possible matches, fan zones across the state, and major transportation impacts centered in the Seattle area, including street closures, increased I-5 traffic, and heavy use of transit, shuttles, ferries, and active transportation. She said the goal is safe, seamless mobility with 80% of stadium attendees arriving by non-personal vehicle, and noted coordination with federal agencies on border crossings and security. WSDOT’s Travis Phelps outlined roughly $25.65 million in World Cup-related funding for tunnel maintenance, traffic operations, signage and digital messaging, public transit support, ferries, and related staffing and training, emphasizing use of existing staff, overtime, and current fleets rather than new hires or vehicles. Senators asked about border staffing and ferry capacity, and WSDOT said it would follow up on ferry staffing concerns. The committee then held public hearings on several bills. SB 5839 would remove the “passenger only” limitation for county ferry districts, allowing them to support vehicle ferries; supporters from Whatcom County and the Association of Counties said the change would help aging ferry systems, improve funding flexibility, and support essential island access, while some testimony was opposed. SB 6032 would amend the secure-your-load law to allow vehicles with mud, rocks, or debris on them to be covered instead of cleaned before being towed on paved highways; the sponsor and industry witnesses said it would save time and water for construction equipment operators, and the hearing closed with strong support and little opposition. SB 5824 would clarify how fifth-wheel travel trailers are measured, allowing up to 46 feet measured from the kingpin to the rear of the trailer; RV industry, dealer, and business groups supported it as a safety-neutral clarification that would align Washington with other states and improve competitiveness, and the hearing closed with overwhelming support. Finally, SB 5864 would create an online motor vehicle insurance verification system at the Department of Licensing, require insurers to provide policy data, and use the system at registration renewal beginning in 2029 after a pilot period. The sponsor and supporters from insurers and law enforcement said the bill would reduce uninsured driving, improve roadside verification, and lower costs shifted to insured drivers, while county auditors and vehicle subagents supported the policy but warned that implementation must be technically reliable and adequately funded so renewals are not slowed. The public hearing closed with substantial support and some operational concerns raised, and the committee adjourned after the final hearing.

Transcript Highlights:

• We're looking to create a foreign trade zone to take advantage of this.
• access to BNSF, Interstate 40, and our revitalized transportation system, along with a foreign trade zone
• Every time the federal government comes forth with something, Like empowerment zones or opportunity zones
• I'd like to ask Izzy about a small concern regarding bonds at the state level, school bonds, etc.
• Districts maintain a small reserve, usually for the next two bond payments in the event of a revenue

Committee: House House Taxation & Revenue

Transcript Highlights:

• We've ruled out private enterprise.
• Overlay zoning district. And with that, I'm happy to answer any questions. Thank you, Kiana.
• I'm an attorney, but I'm not a zoning attorney, so I do have a zoning attorney from my firm here to help
• not in a city, you're on a county island, and it hasn't been zoned for anything in particular.
• This is fixing that fix. ...that say it needs to be zoned commercial. We don't have that anymore.

Summary: The committee first took up SB 1803, which would regulate non-accredited veterans benefits claims assistance by prohibiting unrecognized agents or attorneys from preparing or prosecuting claims, limiting compensation practices, requiring written disclosures and cancellation rights, and making violations subject to Attorney General enforcement. Supporters, including the sponsor and several veterans, said the bill would create needed guardrails against predatory actors while preserving veterans’ choice to use free or paid help. Opponents and some neutral testimony, including a VA-accredited attorney and representatives of the VFW and American Legion, argued the bill still lacked sufficient protections, raised federal preemption concerns, and should require VA accreditation instead. After debate over fees, back pay, and the availability of free services, the committee adopted an amendment and gave SB 1803 a do pass recommendation by a 5-2 vote. The committee then heard SB 1232, a strike-everything amendment dealing with outdoor advertising signs in military airport and ancillary military facility overlay zoning districts. The bill would allow signs on property with a military compatibility permit in areas otherwise treated as residential under a zoning designation, which the sponsor and property representatives said was needed to resolve an ADOT permitting loophole for a specific parcel near Luke Air Force Base and the Northern Parkway. Members questioned whether the change was narrowly tailored, whether other properties could be affected, and whether ADOT and federal highway beautification rules would be satisfied. After the amendment was adopted, the committee approved SB 1232 on a 4-3 vote, with several members saying they would reserve the right to change their votes on the floor. Finally, the committee began hearing SB 1511, which would prohibit operation of a commercial motor vehicle in Arizona unless the operator can prove lawful presence in the United States and would allow impoundment if proof is not provided. The sponsor introduced the bill with a lengthy explanation of commercial driver licensing history and concerns about non-domiciled and limited-term CDLs, contrasting them with Canadian and Mexican commercial licensing arrangements. The transcript cuts off before testimony, questions, or any action on SB 1511.

Transcript Highlights:

• bond election.
• Essentially, a bond counsel wrote it up and put the bonds out on the market, and that's kind of what
• Advisors up front, even before they know whether the bond passes or not, because you can use the bond
• just having bond lawyers draft it.
• And you can look at the size of the bonds, even the simpler, smaller bonds of less than $10 million.

Committee: Senate Senate Finance Committee of Reference

Summary: The Senate Finance Committee approved the March 16, 2026 minutes and then heard testimony on several bills, with the chair noting that votes would be taken in batches because members were coming and going. HB 2939 would increase the rural qualified facilities tax credit from $20,000 to $25,000 per job for certain projects with initial investment under $2 billion; Lucid Motors supported it as a rural economic development tool, while Senator Epstein questioned the fiscal note and whether the higher credit would actually attract new investment. HB 2950 would authorize tourism improvement areas funded by voluntary lodging assessments to support marketing and tourism promotion; the Arizona Lodging and Tourism Association and Visit Phoenix backed it as a competitive tool for rural and urban destinations, and committee members focused on whether participation was truly voluntary and how the assessments would be administered. HB 2780 made technical conforming changes to Arizona’s property tax lien foreclosure and excess proceeds sale process, building on a prior law that created a mechanism for delinquent property owners to recover equity; the sponsor and a longtime constituent said the changes would fix timing and credit-bid language so qualified entity sales could work in practice. HB 2502 would let certain elected officials in ASRS retire at normal retirement age without resigning their office, with the employer paying the alternate contribution rate; ASRS said it was neutral, and the sponsor argued the bill would treat elected officials more like other ASRS members. The committee then adopted do-pass recommendations for HB 2502, HB 2780, HB 2950, and HB 2939, with each passing on split votes. The committee also adopted a striker to HB 2140, allowing the State Treasurer to invest up to 10% of state trust and treasury monies in physical gold or silver bullion held in secure U.S. depositories. The sponsor and the Sound Money Defense League argued it would diversify reserves and hedge against market disruption, while opponents said gold is volatile, costly to store, and not something taxpayers need the state to buy. HB 2140 then passed as amended on a 4-2 vote. Finally, the committee heard HB 2398, as amended, which requires commercial liability insurance for watercraft rentals and peer-to-peer boat sharing programs, with supporters saying it addresses uninsured rental boats and law enforcement concerns; the bill passed as amended on a 6-1 vote. The committee also heard HB 2999, a major housing-finance bill creating state affordability infrastructure districts to finance public infrastructure through bonds and assessments; proponents said it would lower housing costs by spreading infrastructure costs over time, while contractors and some senators raised concerns about payment risk, impact-fee treatment, and whether savings would reach homebuyers. After adopting a striker and hearing extensive questions, HB 2999 passed as amended on a 6-1 vote.

Transcript Highlights:

• This is critical since the city's water enterprise has been operating at a structural deficit for several
• , when you're being specific requirements in the general plan amendment, I'm envisioning a certain zoned
• there has to be a carved-out area, even though that specific large 10-acre, 20-acre area has been zoned
• So, but in... ...zoned as R-1, single-family homes, but in the corner somewhere it will be an easy place
• If you have a community that doesn't have the zoning to allow for this to happen, then it makes it harder

Committee: Senate Local Government

Transcript Highlights:

• Is a portion of that to service the debt service on bonding for building the boats?
• Nickel bonds were used to pay for one vessel. Mostly cash has been used.
• So if the treasurer issues bonds and...
• So mostly we’ve not been applying bonds on the ferries capital side. So I guess...
• the bonds were issued, and the expenditures weren’t there that were eligible in the ferry system, so

Summary: The committee received a detailed staff presentation on Washington State Ferries’ capital needs, current fleet status, and long-range funding outlook. Staff described the current service pattern, ridership recovery since the pandemic, the aging fleet, and the state’s plan to add three new hybrid-electric Olympic-class vessels under the 2025 budget, with delivery expected around 2030-2032. Members also heard that the fleet is operating with no reserve vessel, that preservation time is below the desired level, and that terminal electrification and vessel conversion plans face timing, cost, and procurement risks. Questions focused on ridership trends, biofuel supply, design-risk allocation in vessel contracts, sequencing of terminal electrification with new vessel delivery, and the cost and feasibility of restoring international Sidney service, which would require a SOLAS-certified vessel. Staff then outlined ferry capital funding, saying recent spending and programmed needs are far above regular ferry-specific revenues and that the system relies on a mix of dedicated accounts, transportation package money, federal grants, and transfers. They said the near-term budget is balanced through 2027-29, but the longer-term capital outlook shows a shortfall of roughly $250 million to $300 million per biennium, with broader unmet needs much higher. The presentation estimated costs for future vessels, life extensions, terminal electrification, and additional Jumbo Mark II conversions, and noted that the current enacted plan does not fully fund fleet replacement, full electrification, or life extension of older vessels. Members asked for follow-up information on terminal seismic/environmental issues, contract options for additional vessels, and the timing and cost of alternative vessel designs. The committee then shifted to WSDOT maintenance and preservation. Pascoe Focktich described maintenance operations, including winter response, guardrail repair, facilities, equipment, and the effects of underfunding and inflation. He said most of the maintenance budget is fixed cost and labor, that material prices have risen sharply, and that many facilities are in poor condition with asbestos issues and deferred upkeep. He also noted growing guardrail damage, increasing pavement claims, and the burden of maintaining aging bridges and facilities. Members asked about prior planning for these needs, the role of asbestos, and whether more proactive sequencing could help budget decisions. Troy Suing then presented the highway preservation program, saying WSDOT is in the early stages of critical failure and has stretched preservation dollars as far as possible. He explained the distinction between pavement, bridge, and other highway asset preservation, said the department is largely reactive, and estimated that delaying work can make it three to five times more expensive later. He said about 40% of roadways are currently due or overdue for preservation, bridge conditions are nearing the federal poor-bridge threshold, and the department’s 10-year preservation need is about $8 billion. Members asked about the cost of deferring work, whether the department could do more if funded, how priorities are set, and whether other states face similar problems. Finally, Evan Grimm and Mike Fay briefed the committee on bridge strikes by overheight vehicles. They described recent incidents on I-90 near Cle Elum and SR 410 near White River, the damage and closures caused, and possible countermeasures such as public outreach, improved trip-planning tools, and a pilot warning system with sensors and flashing beacons. Fay explained the state’s financial recovery process for third-party damage, saying WSDOT recovers roughly $20 million per biennium and about 78% to 80% of billed damages, with money going to the motor vehicle fund. Members asked about prevention, insurance recovery, and whether the state uses claim data to inform future design or safety changes.

Transcript Highlights:

• That whole enterprise is now on a starvation diet.
• already lost hundreds of millions of dollars in federal funding that was supporting our research enterprise
• So yes, these are very drastic, really unprecedented attacks on the university's research enterprise.
• And so we don't see this as some special enterprise.
• We have certainly heard that there might be some bond activity to help support research, which would

Summary: The Assembly Budget Subcommittee on Accountability and Transparency held a hearing focused on three issues: federal funding cuts and delays, possible state revenue impacts from reduced IRS enforcement, and the fiscal effects of AB 218 on local governments. The Franchise Tax Board described how state and federal tax systems are closely linked, how most returns are filed electronically through software, and how FTB relies on IRS information sharing for compliance, fraud prevention, offsets, and nonfiler work. Members raised concerns that federal staffing cuts at the IRS could weaken audits of large corporations and reduce California revenue, and asked about VITA and ITIN filers; FTB said it was not aware of VITA reductions, noted ITIN returns are processed the same as other returns, and said ITIN filing appeared slightly down this year. The Department of Finance said it is monitoring federal developments, summarized the continuing resolution and reconciliation process, and noted that California lost nearly $940 million in earmarked federal projects under the CR, while major federal budget decisions remain uncertain until the President’s budget and later congressional action. The University of California reported substantial federal pressure on research, student aid, and health care. UC said hundreds of millions of dollars in federal awards have already been canceled, with additional threats to NIH and DOE facilities-and-administration rates, graduate fellowships, student loan repayment plans, international student visas, Pell Grants, and Medicaid/Medi-Cal funding. Committee members pressed UC on the effects of DEIA-related federal restrictions, the loss of clinical trials and research staff, and the impact on low-income students and patients. UC said it is pursuing litigation with the Attorney General and other institutions, but emphasized that court action is only a temporary solution and that sustained state and private support may be needed. The second panel addressed the fiscal consequences of AB 218, which extended the statute of limitations for childhood sexual abuse claims against public agencies. FCMAT presented a report with 22 recommendations, including better statewide data collection, financing mechanisms, a possible victims compensation fund, and prevention measures. Los Angeles County described a tentative $4 billion settlement tied to AB 218 claims, saying it will require reserves, borrowing, and long-term annual payments through 2050, while also forcing curtailments and cuts to vacant positions to preserve services. Members discussed insurance pools, retroactive premiums, unidentified future claims, and the need for a compensation fund or other financing tools. No formal votes were taken; the hearing concluded with public comment, including testimony from local health officials about nearly $400 million in terminated federal public health grants and the resulting layoffs and service impacts.

Transcript Highlights:

• And just for context, that is mostly our UF Health enterprise.
• And just for context, that is mostly our UF Health enterprise, looking at that as a separate corporation
• debt, we've got to be careful taking those funds out of those accounts because it could impact the bond
• Strategic investments in the research enterprise will allow further research and solve more of the day-to-day
• Strategic investments in the research enterprise will allow further research and solve more of the day-to-day

Committee: Senate Appropriations Committee on Higher Education

Summary: The committee held an informational hearing on higher education funding, focusing on how Florida’s university system should be financed and whether a new funding model is needed. University system financial officers and Chancellor Ray Rodriguez discussed major cost drivers, including wages and benefits, utilities, maintenance, financial aid, research, and the effects of geography, institutional mission, and student mix. UF highlighted the cost of research and graduate programs; UCF and FAU pointed to growth, location, and cost of living; FAMU emphasized recruiting top-tier talent while relying on other revenue sources; and UNF noted the challenges of growth and long-term planning. Members also discussed the role of internal controls and audits in addressing excessive spending and questioned whether out-of-state tuition should be adjusted to help offset costs. On revenue sources beyond state appropriations and tuition, the panel described auxiliaries, restricted funds, capital projects, and component units such as foundations and health systems. Several universities noted that some revenues are restricted to specific purposes and cannot be used for general operations. FAMU explained that a large share of its capital project funding reflected active campus construction, while UF said its component-unit revenue is largely tied to UF Health. The Chancellor emphasized that the system’s low tuition and strong state support are central to Florida’s national standing, but also noted that some auxiliary revenues are pledged to debt and must be managed carefully. When discussing the current funding process, witnesses praised Florida’s performance-based funding model for aligning incentives with student success, transparency, and accountability. They also raised concerns about non-recurring appropriations, rising employee benefit costs, unfunded mandates, deferred maintenance, and the difficulty of multi-year planning. Suggestions for improvement included more recurring funding, better coverage of mandated costs, greater flexibility in fee-setting, and possible weighting for mission, geography, and institutional type. The Chancellor said the Board of Governors is considering a “version 3.0” of performance-based funding that would benchmark institutions against peers and Carnegie classifications, but any changes would require legislative action. On out-of-state tuition, most universities said they would prefer local board flexibility, while the Chancellor cautioned that increasing out-of-state enrollment or fees could affect future state support and should be balanced carefully.